FWIW, I think the yanking of the licenses from Piazo is merely the latest in a long line of errors of judgement by WotC. This one hurts not only Wizards but the whole of the RPG hobby, as it removes the two best known periodicals from magazine stands, and from the hands of devoted 3E fans.
What a great way to maintain consumer loyalty and build the base of RPG fans. – Gary Gygax
If the magazines were doing poorly, WotC wouldn’t care if Paizo put out others. No, it’s just the opposite. They’re doing well, and likely WotC products–probably specifically adventures–aren’t doing as well as WotC wants. There’s been some loud voices at WotC crying that Dragon and Dungeon (particularly Dungeon) are too good a value. They’re too good for the customer, and smart customers buy them rather than regular products. This was true when WotC put out the magazines, and it’s been true under the Paizo banner as well. I’m guessing declining sales gave these voices the evidence they needed to axe the magazines. – Monte Cook