This cancellation has nothing to do with the race to four and shootout format. Most players have already shown they'll try it as the added money is good, provided they can keep their expense in check.
The event was cancelled due to a lack of signups. That's how business works. One can plan an event or convention but if very few people commit to participation, it's typically good business to cancel. Though it's disappointing, how can one possibly take exception to the cancellation of an event that didn't reach its "critical mass" with respect to participation level?
All the credit to the event sponsors for trying to stage a WPA-sanctioned event in Canada but this is on the players who, as a group, chose not to support the event.
While the continued mask mandate in Canada is probably a small contributing factor, I believe this cancellation is due to the fact that it was to be located in an area where there aren't serious players that can get there easily and cost-effectively. From New York, round trip airfare to Alberta runs about $500 while round trip airfare runs just $200 to Toronto. An extra $300 of fixed cost is a very big deal in our sport.
In my view, the high travel and participation costs caused by the choice of location doomed this event.