They did. The date of the blog post is Jan 2011. I used to fly that a couple of times. I even upgraded to first class a couple of times because it was only $250 extra. I'm actually very disappointed they cancelled that route.
Not only is the article from Jan 2011, he was able to successfully enter the US in March, and seems to be able to go there often now. So really not a problem for him long term.
FWIW, they didn't cancel it due to poor ridership - VX decided to concentrate on other routes while their fleet was still small. AFAIK there are still plans to restore the YYZ route once the fleet size is up to par.