This latest move all but proves my theory. BioWare know that their PvP planet is not entertaining and in many casses, it's frustrating to the point of rage quiting the whole game.
During the first few patches we can observe BioWare's attempts to make the most of it, with instancing and tweeking the cannons.
Then GW2 released their press beta. This got alot of people realy excited about the game and it's ORvR features. BioWare realised that to compete with GW2 and retain some of the 1 million people that have signed up for beta alone, they would have to do something simmilar in scope and complexity.
BioWare would have then done some planning and came up with a ball park figure to take to EA. EA, having just lost $3 on their shareprice and still wheezing from having to cough up $300,000,000 for SWTOR in the first place, most likely balked at the idea of another significant investment in cash and man power.
BioWare as a result are now moving to push people away from their failed attempt at ORvR and will concentrate on their strengths, PvE and Scenarios. If they can raise enough money after paying off the investers they may attempt to take on GW2 in terms of RvR. This won't happen any time soon though and I think the most prudent move for serious PvPers is to take some time out and see how GW2 performs in the beta's.