im too tired to go to the original post, but didnt they say they cancelled it because they had too much on their plate or whatever? wouldnt journeys end we might get a bit?
The main reason was that despite the changes they made, already switching development partners once, the game was not meeting their own standards for the quality they envisioned and didn't feel they would be able to meet those standards in a reasonable time frame.
From the sounds of it, it seemed like Re-Logic felt it would be a disservice to release a game that did not have the proper standard of quality.
I don't know and couldn't say if other aspects of their workload had an impact on it or not. After completing Journey's End, they will start a new project, it's not known whether it will be Terraria related or not or when more info about it will be revealed.