Yes I saw this too.
There is a page that lists all the benefits and differences from FREE->Premium->VIP. I see they had/have a lifetime sub option as well.
I've thought about checking it out, once it goes FREE. I'm hoping that LOTRO will actually allow me to play an Elf Ranger who is an actual Ranger type character.
The population might be low, but like DDO once it went F2P the populations increased. After the success of DDO F2P it was only a mater of time.
For a comparison of what you get from FREE->Premium->VIP
http://www.lotro.com/betasignup/vipchart.html