The article is downplaying the impact of this project but from what I know in the industry (I work in tech), a company that has the resources to start moonshot project don't typically cancel them unless they're hurt elsewhere.
Is Google running into financial trouble too?
If Starlink works, you don't need these balloons... simple.
Monkey Werx mentioned on his last video that project loon stopped being an internet service and was spun off as an observation/spying service. Not sure what the source is for that statement but it wouldn't surprise me. Also wouldn't surprise me if project loon was a cover to get people used to surveillance balloons similar to life log becoming Facebook.
Those balloons were never going to be competitive.
Same with those trying to provide the Internet with drones etc.
It's a kind of project that would be fun in academia. But how reliable will such a service be? Interruptions and customers will never bite. And you'd need an army to keep up with the gaggle of balloons. Staff costs of running around all over the country after balloons will kill you.
It's like IoT cheerleading. I've seen consultants projecting a multi-trillion dollar business for IoT in 2020. Well, it light years away from that. Meh. Overblown hype.
A lot of such stuff is never practical.