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This was canceled at the point where Apple needed to commit to spending a lot of money to implement the design in silicon. I heard it was canceled because upcoming COTS processors looked like they are going to be faster and cheaper. (Source: I worked in a different part of Apple ATG and was talking with some of the people on the project.)

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I’m actually one of the architects of this processor. The story that I tell wasn’t so much that they were at the point of needing to spend real money, but it was pointed out that to compete with Intel/Motorola they would have to pay for development over and over- and the couldn’t afford (then) to spend the money to do that.

Ironically, that decision led (pretty much directly) to the formation of ARM (and PowerPC, of course)

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