As the late Benny Hill used to say "What a road of old cobras."
I don't understand why it's a word. It is three letters; when I read it my mind reads "ell, oh, ell" not "lol".
If LOL is a word it is the only one I know which is always capitalised. What about other sets of initials like KGB (cudgeba?) or BBC (bubucuh?) Why aren't they words?
Will the next generation twerp spk (text spk)take this one step further and "acronymise" the acronyms so for instance "ROTFLMAO AFAIK TTYL STFU" Becomes"RATS"