From The Verge's overview:
Since it was founded two years ago, Creative Labs has been one of the most interesting parts of Facebook. Built as a startup within the company, it built a series of experimental social apps designed to test new interfaces and interaction patterns. But the experiments have come to an end: Facebook said today that the division has been shuttered.
Disconcerting news to say the least. We depend on these innovation labs with deep pocks to propel the UI industry forward. I hope Facebook is just moving them to a less public-facing lab (ala Apple) or distributing them to work on more popular projects.