You get to keep them, you just can't play them until you renew.
Just noticed it was Little Big Planet 2, not 1. Definitely grabbing that.
I loved the first one.
Might have to renew another year now just to continue playing that past october LOL.
The Cure 
My Chem. 
I dont regret the tiny fee for PS+, it has more than enough perks to warrant the cost.
.14 a day feeds a starving Sony Employee.
I have two 1 months trials to give away, just trying to decide how to do it.
I had been considering buying Just Cause 2 for $20 at Walmart anyway. For the most part I don't keep my games when I'm done with them. This gave me that game and a bunch of others for only $17 so I think it was a good deal. Plus I can cloud save now and they offer discounts when you buy stuff.
Plus I got my cool new "Business Dog" avatar.
Speaking of bundled savings, are you getting the premium pack for BF3, Doc? I think I will but in a few weeks, I'm tight on cash at the moment. It breaks down to basically all the DLC for around $12 plus some exclusive camo and a new knife.