Both posts are very much worth reading.
ETA: According to Amy Kathleen Ryan's blog, Melissa de la Cruz has also pulled out.
ETA: And according to her own blog, she has.
ETA: Tera Lynn Childs on her decision to withdraw.
ETA: Saundra Mitchell.
ETA: Pete Hautman, Part Two.
ETA: The Smart Bitches.
ETA: School Library Journal.
ETA: Houston Press.
ETA: Publishers Weekly.
ETA: Tera Lynn Childs at Romantic Times Book Review.
ETA: Todd Strasser on why he IS going to the TLF.
ETA: Roger Sutton. (Heh heh heh.)