As someone who lives in New Zealand, I think that its only a matter of time before the domain name is seized. This whole MegaUpload affair has shown that the US government has quite a lot of sway over the NZ government and in my opinion I don't think they will stop until he's extradited to the US and put behind bars.
Assange is still chill-banging. Sipping Aguardiente. Schmoozing Ecuadorian diplomats. Yelling shit about the commander-in-chief out from the balcony to the glassy-eyed press [1].
As for Mr. DotCom, don't hold your breath. NZ is still busy kissing his arse [2].
The NZ courts have been quite good in the MegaUpload case. However the NZ government has shown that its happy to essentially overrule decisions of the courts if it doesn't like the decision.
Although Kim has become a bit of a celebrity in NZ now, he's even looking at funding a program to bring free fibre optic to NZ. ( http://www.stuff.co.nz/technology/digital-living/7904696/Dot... ) So the government may not do something too hasty as it would cause a large amount of public backlash.
Last I heard Assange was still stuck in Ecuador's London embassy, which is what your linked article seems to imply too. Not exactly as rosy a situation as you're implying.