This is sad. :(
The most recent Discworld book, Unseen Academicals, was one of my favorites... as far as I can tell, he still writes as well as he ever did.
Really? I felt that it was a considerable step down, and noticed what I considered to be a deterioration in the quality of the series since even before he received the diagnosis (when I found out I was sad but unsurprised.)
Considering that Nation stood out from the trend I noticed in this work though, it might be that he's struggling to deal with an overworked setting rather than losing his skills, and I suggested as much when I wrote a review for a friend's livejournal community.
http://blastr.com/2011/06/terry-pratchett-begins-fo.php
Another great mind that will be needlessly lost forever. :(