Elliot, I apologize if my changing the bug status was offensive to you. I can understand your decision not to work on the bug (which would entail trying to convince your bosses at Canonical to allow you to Free the code). I would request that you would leave it open until such time as Canonical decides to give freedom to users of UbuntuOne.
My primary annoyance is with the choices available by default on launchpad. "Invalid" makes it sound like the user has reported a bug that isn't real. It seems there is no state similar to bugzilla's "WON'T FIX", which I think is better fitting. Users have seen something that clearly is an issue for them, but the developer (Canonical) has decided to make it proprietary.
Anyway, I won't change the state again, and I am sorry that it upset you. I hope you will strongly consider making the case to your bosses that they should respect the freedom of users.