In case anyone also faces the harsh reality of having missed AVOS's deadline, I will share my exodus journey from Delicious to Diigo, another bookmarking site.
1. Access the old Delicious servers to retrieve your bookmarks, as described at:
http://gabrielleabelle.livejournal.com/337468.html
To know how to edit host files on Mac OS X, refer to:
http://www.switchingtomac.com/tutorials/how-to-edit-the-hosts-file-in-os-x
As of Oct 30th 2011, it's still possible to access these servers. You will be prompted to log in with your Yahoo username and password. After this, you will arrive at a plain looking page.
2. Export bookmarks in .htm format by going to Settings. Under Bookmarks, select Export/Backup Bookmarks.
3. Import the htm list to Diigo. In Diigo, go to Tools (top right corner menu). Under Web Services, select Import bookmarks and browse to the .htm list.
Et voila, you have rescued all your Delicious bookmarks, together with tags, to Diigo!
What an unnecessary hassle and waste of time you might say. But hey, I am actually relishing the fact that with Diigo toolbar Add-on for Firefox, any bookmark I save from now on can be set as "private by default". Delicious never made this feature available to its users, despite numerous appeals.
P.S: Prior to attempting the above method, I followed another advice at http://leo.gaggl.com/2011/10/export-delicious-bookmarks-in-xml. It gave me a .xml list of exported bookmarks which Diigo had troubles importing. Specifically it says "Oops. Something wrong. Please check the file size and format. Don't hesitate to contact us (with your diigo user name) if you still experience problems."