I feel as though Scalebound Didn't happen because Microsoft was interfering too much and wouldn't let Hideki Kamiya make the game he wanted.
From what we saw in the gameplay demos the game was pretty rough around the edges already, the multiplayer was probably forced in by Microsoft.

It's better that the game never come out, then come out and end up shitty.

I've been viewing cancellations as the exact opposite since the Silent Hills cancellation. Either could have been the best game of their genre and blow everyone away, or they could have been pieces of shit. Either way, we would have been able to at least experience the game and get at least something out of that.
Never knowing what a cancelled game would be like just leaves a sad and hollow feeling in me nowadays.