The point isn't that nothing can happen if nothing is observed. The point is that the act of observation can alter the course of future events. This has been proved beyond any reasonable doubt through Bell's Experiments and subsequent, similar experiments of greater sophistication.
As the article correctly points out, a crucial open question is "what constitutes an observation?" I tend to take a far more broad view of what constitutes an observation than what Krause takes, but I must admit that this is based on my own personal bias and not on scientific evidence.
In any event, I think the article must have somewhat distorted the views of Krause (who is a well-respected physicist), as the article makes it sound like the evolution of a system subsequent to observation is deterministic, which no one has ever claimed. What really happens is the probabilities of future events are altered (the exception is if one performs continuous measurements, which is not the case here).
In other words, at most we increased the probability of the demise of the universe in 1998.
So, the universe suffers from "stage fright?" Our watching it turns it into a "shrinking violet," maybe? *gasp*
Everybody, quick, close your eyes!!