Yes, that's exactly what I thought when I read this story, what the hell? Apparently Elton John was scheduled to produce and write the music for this upcoming classic cartoon for Disney, but Disney have reassigned the people slated to work on it.

From Yahoo:

"Gnomeo & Juliet," an animated musical based on William Shakespeare's tragic romance, is no longer in production at Walt Disney Feature Animation, the studio said Monday...

...John was producing the movie about small star-crossed lovers through his Rocket Pictures banner, and was engaged to write the songs.

Well I'm not going to cry over the loss of this project, I mean Gnomeo and Juliet?! It doesn't sound that exciting to me and Disney have better projects to work on since they bought over Pixar. Let's hope that this is a sign they're going the Pixar direction in cartoons and not hanging onto the old Disney way.