@Pat I'm not reading that as a possible reason in the link you've given. I've always thought the reason was because it is not 'Star TREK', it is on a stationary space station. Which, in hindsight, is actually one of the strongest point in this series. No more loose episodes, every time in a freakin' different location. More consistent storytelling thanks to a familiar environment.
@trinsec
Of course they're not going say, "Hey, we're racist so we're going to sabotage this project."
They'd come up with some ostensible reason for killing it. I'm not saying that that's what actually happened here. You'd never know unless you were involved in the project, and even then it would be difficult to prove for sure if it was racism or just a coincidence. But Paramount seems to have a lot of coincidences with Star Trek and race, like Geordi.