Hm... i dont know about all that... thing is that there can be truth in lie... it happens all the time here, that new project is started, but just for profit or trial, to see if idea functions and what will response be... Now, as there are no news confirmed, there is no use in guessing will this projects be continued or stoped...
But fact is... that after release of Biomega vol1, there is 0 news about it... after NSE chp1, there is nothing about it... no releases, no info, nothing... :?

Is it true or not? But honestly, I am not surprise if it was true. Manga in Japan is a highly competitive industry. There are so many many mangas in the market and still many many new projects started everyday.

Usually it's not the author who wanted to stop it. It is the editor (on behalf of the publisher) who think that the work is not popular enough and decised to cut it. The work would not end without an ending, though. The author would normally be asked to write an ending, which looks "unnatural" to readers sometimes, and claimed that it's the end of "part 1" (but there will be never part 2). Famous examples are Slam Dunk, Hikaru and Yu-Yu-Hakusho.

Edit: okay, the examples I've given are not quite right, as they were very popular indeed. Actually they were asked to stop for other reasons, from what I heard.