No, it s still operating. I have a bunch of family/friends that work there. I live 15 miles from here.
I remember the protests being all over the news as well. The only things that came of it was they (PG E) improved the structure of the plant to be more earthquake resistant and we got a rate increase to pay for the 5 or 6 years of litigation the protesters caused. The plant had both reactors operating by the mid 80 s.
It is still in operation to this day. Not sure where you heard that it was no longer in service.I went to school at Cal Poly in nearby SLO and I never remember seeing picket lines there.EDIT: PGE is in negitions for a 20 year extension on the contract at Diablo Canyon. See article from 11/27/09 http://www.sanluisobispo.com/348/story/9��