Well, when i spoke to Sierra’s people yesterday they told me Middle-earth Online (MEO) is not cencelled, but in a restructuring mode. So I’m assuming that this report means they are hiring a new DEV team, read on:

In addition to cancelling Orcs – the entire Middle Earth Online development team was sacked yesterday. Sierra told them that their vision of how to impliment Tolkien’s world wasn’t “mainstream” enough to be profitable, and when they wouldn’t bend, they sacked them all. The ex-Dev Team was going to have things in such as extremely limited magic usage, very few elves allowed (and you’d have to prove your roleplaying ability to play one) as the game was being made in the Fourth Age, and having it that if your character was killed (not just knocked out), he couldn’t just be resurrected with a magic spell – permanant death. It all made sense, and the Dev Team listened constantly to Tolkien fan input and ideas, so it looks like if the new Middle-Earth isn’t a hack and slash spellfest, it won’t go any further than this one did.

This all remains extreemly shady, but I’m still looking into it.

Thanks to Collin W for the tip!