It's bullshit. He's 1-2, he deserves another chance. His 1st fight in the UFC was against Lyoto fucking Machida, that alone should make his record stand 1-1, in my eyes.
Apparently this had nothing to do with skill/marketability, more so the fact that UFC was dropping minimum of $40,000 on him to show with another $40,000 guaranteed if he won.
Having said that I'd be curious to know if anything kind of a contract restructuring was done or if they just cut him point-blank.