Ugh. You had to remind us of that horrible night. I've been trying hard to forget that fire.
They must have, or are planning, to replace it. The official homepage of the Grand Californian shows the original carpet, and that's an updated homepage (the old GCH homepage showed a green background with pictures of the exterior).
http://disneyland.disney.go.com/dlm/...anHotelHMFPage
I wouldn't think they'd newly promote that lobby area, complete with picture of carpet, front and center, if they weren't planning on repairing/re-installing the original carpet.
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