it has degraded a bit, but it's perfectly fine. If that's the same battery you had when you bought your computer, then you should get a year or so before you want to think about replacing it.
The real issue is; at some point, the battery will start to not hold enough charge to get you through the day. Once that's the case, then you definitely would want to replace it, but that's highly subjective. As things stand, it should last about as long as it did when you purchased it, minus up to an hour perhaps, but these things are supposed to last 7 under average conditions. Again, I wouldn't worry.