The trouble all started back when Slamdance leadership attempted to remove Super Columbine Massacre RPG! from the festival, after it had been selected as a finalist. Several other finalists (including this one) had adverse reactions to that.
As a compromise solution, Slamdance was going to hold the games festival in Los Angeles, where there aren’t as many mormons (and where, I guess, the games festival would be enough far-removed that it wouldn’t tarnish the image of the film festival. Or something.)
This is kind of a bummer, because it’s one less venue for indie games to get exposure, and I know that Sam Roberts put a lot of work into it. At the same time, there are other, more-active festivals now, and Sam is a director of one of the most prominent ones, Indiecade. Indiecade are having showings at E3 and PAX this year, as well as a stand-alone show at OpenSatellite in Seattle. Braid was in the IndieCade showing at E3 2007, and it was a good situation.