The consensus appears to be that it was doing fine sales-wise and it's purely a matter of content that DC eventually found too much to publish. It seems highly likely that the series will continue elsewhere.
On the Newsarama site the details seem to consist of all concerned going out of their way to tell us how nice Wildstorm / DC are being over the whole thing.
It does make you wonder whether anyone in DC actually read the pitch for this or whether they just caught the first line with Garth Ennis’ name and mention of Preacher on it?
But this is the post Authority clean-up of DC after all. And no matter how cool, trendy, risk-taking and socially relevant you try to be to impress your children there’s always going to be a time when the real grown ups at DC &/or Warner Bros come in and tell you to turn the music down or they’ll take away the stereo.
(I got it here from the FPI blog.)