Just dropping in to sorta back you up.
That site is still earmarked for SW expansion. But I don't believe this has anything to do with that right now. I believe the original contract was for three years (would have to check with folks on the left coast and I really don't care enough to do so), so it would make sense that the last three year deal is ending in early 2015.
The attraction, which was very well done (and I hate the whole song contest/reality TV genre), was never close to being as popular as Disney hoped. And now the TV show is on its last legs (I still think it likely has 2-3 seasons left barring a miraculous uptick in popularity). The land was going to be used for SW anyway, so (much like the subs at DL) WDW can save a pretty penny by adding more dead space to a park full of it. Maybe they'll put some temporary SW attraction in there for next spring ... who knows?
But I wouldn't take this as any sign that SW expansion is imminent. Wish it was, but it isn't.