Also, FS3 can't be cancelled as it was never on the table to begin with. Marcov, the chances of anyone doing FS3 are extraordinarily slim, due to the following factors:
1. Space Sims, as a genre, are a complete niche product. For a company that wants to make money off of their games, going into a project like that is extremely risky.
2. Volition does not own the rights to the FreeSpace universe. It's owned by Interplay, who want an unreasonable amount of money for the rights.
2b. Interplay is not in the position to invest in a new game in the FS series, due to an acute case of being rather broke.
3. Volition is not an independent company. It is owned by THQ, meaning that any project they want to start has to be approved (and is funded by) THQ. Who are more interested in getting a good chance of selling something like a new Saint's Row than risking several million dollars developing a new FreeSpace.
So no. FS3 isn't cancelled. Because, in order to be cancelled, it would need to be started first, which noone has done or is in a position to do at this time. Is that clear enough for you?