It's not hard to believe it's cancelled. A lot of people here may think these bands kick ass, but the average person doesn't know who the hell most of them are. It lacks the big names that would draw the casual listener.
Last year had Incubus, Audioslave, A Perfect Circle and Queens of the Stone Age. Incubus alone would draw a huge number of mainstream fans. You guys are telling me you're surprised Broken Social Scene, Morissey, and Modest Mouse didn't draw? Come on now.
Whether people here like Incubus/Audioslave/APC/QOTSA, the fact is, people hear their singles on the radio and go. When was the last time you heard Broken Social Scene or Modest Mouse on heavy radio rotation? The bands just aren't big enough to draw the mainstream fan, which is what you definitely need for a festival such as Lolla.