Yes, the line was cancelled, but not the moulds. Anyone who felt cheated by assuming that a cancelled line meant that Hasbro could no longer use those moulds, was ignoring/forgetting the fact that Hasbro redeco just about everything, but not necessarily within the one line.
The entire Universe line was pretty much just redecos from existing 'cancelled' lines. So were a lot of Classics and store exclusives under the Universe and Classics banner.
A cancelled line just means we won't see a certain figure in that packaging again - it does not rule out a certain figure from ever being released under a future line/banner. That's the element of short-sightedness I was referring to (assuming a cancelled line means no more of that mould to ever be used).