When I was there at the end of February it was closed for remodeling. There was a tent-type temporary store. There were some new lego statues that were finished and they looked awesome.
Allears has it closed as recently as 3/6. From allearsnet:
At Downtown Disney, although the Lego shop is still closed, there are some new Lego displays out. The serpent (or dragon) in the water looks new, with more vivid colors. Several items are still behind construction fences.
Already completed is a family of tourists with dogs!. The husband and wife are each taking pictures of the serpent. Looking in the view finders of their cameras, you see that the wife, at least so far, has cut off the serpents head.
i've noticed 2 things with tehm lego pics:
1.teh dogs look so real ar you sure they are fake?
2.on the woman's bracelet you can see one of teh legos has the eye on it (you know when you use the eyes for the models when you make a face)
I'm so excited they've finished. When we were there at Christmas, pickins were a little slim. A CM had told me of the closure and that more variety or new lines or offerings were to be brought in with the reopening.