To say they knew ages ago seems unfair really. Based on what they said it sound very much like a raid was intended.
Most likely it came down to a last minute decision they didnt want to do.
In the end I would prefer something over nothing, rather than another half broken raid.
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They would not have only been halfway done with an entire raid only 4 weeks from launch. Development in scopes this wide take a [i]long[/i] time because of the planning and testing involved. They would have known months ago that no raid was planned. That's probably why development started on the new PvE mode.