Working on doing some advanced ArcGIS server printing and had the need to batch convert many existing .mxd files to .lyr files. So instead of opening up X number of map documents, thought I would do it via code. All of my .mxds in this case had just one data frame so the process was pretty simple–I add an empty group layer (Thanks Petr Krebs for the idea), copy all the existing layers into it, and save it out as a layer file.