Some unfortunate news for AT&T Android fans as EngadgetMobile is reporting the company has canceled the rumored HTC Lancaster. The Lancaster was a pretty spiffy looking phone, taking on the design of the HTC Magic but also featuring the slide out QWERTY a la HTC Dream:

Blame for the cancellation was placed squarely on the shoulders of the Lancaster’s quickly antiquated specs, mainly the QVGA screen resolution which is the same breed of problem which forced the Kogan Agora into early retirement. Hopefully AT&T and HTC will breathe new life into the Lancaster as Ruslan Kogan has done with his project.

The HTC Lancaster wouldn’t have been the best Android on the block, but nonetheless it would have been a solid option and at a discounted price, I can see plenty of people piling on the AT&T train to pick it up. If they’re ditching the device in the name of specification excellence, I sure hope they’ve got something else in the pipeline that will impress us sooner rather than later.