Source on wasn't in their interests? I've only read that they couldn't continue it due to a: aggressive regulations by incumbers preventing entry of new ISPs (such as Fiber), b: most companies (like Comcast) miraculously offered fiber once Google Fiber was in the game, and c: they're focusing on wireless/balloon solutions.
These are just what I read but I would love to hear if this was just PR and there was a sinister reason like you imply.