The singer is very much alive and well, posting a picture of himself on Twitter with a dated hand written card saying "Heaven looks a lot like New Jersey"
The hoax started with a 'news article' posted on 'dailynewbloginternational' and seems to be the only article on the blog. The reason for the hoax is unclear and large sections of the article were lifted verbatim from an article about the death of Michael Jackson.
Here's what Jon had to say about it: http://m.facebook.com/BonJovi?_rdr
We're all glad that he is alive and well!