This should come as a surprise to no one that saw the traffic jam mess the networks created on Thursdays at 8PM. Faced with Survivor, Everybody Hates Chris, The O.C. and Joey, this cult favorite which was picking up steam with its Lost lead in suddenly found itself without an audience. So, ABC, in its infinite wisdom, has decided to move Alias to a post-Lost slot for a few weeks before finding another place for it and then cancelling the series in May.
We all knew this was coming. ABC put the show into the crossfire and expected it to survive, and given the competition in their key demos, that wasn't happening. It wasn't the highest rated show to begin with, and to move it just as it was finding a following is a bad idea. Or a clever way of ridding the network of an expensive project. Either way, unless there is a miracle, it isn't coming back.
I think the only consolation I can find is ABC is going to let Abrams finish the series rather than leave a bunch of loose ends flopping about.