See What A Little "Over Reaction" Does To Change The World?*
Yes, it looks like White Wolf has decided that the reaction to the Pay To Play policy was distinctly negative and bad for business and are pulling the policy.
* Over Reaction is what everyone was telling me I was doing by my posts in this regard and my desire to block this policy from coming into existence because of the chilling effect it would have on gaming. Right or Wrong, by getting folks to respond and get their voices heard over it has had a positive effect. Thanks to everyone who posted about this here and elsewhere, and who contacted White Wolf about the problems with their blanket policy.