You're all wrong. It was cancelled because Mikezilla didn't see it until now. I'm serious. I also didn't see it (or know of its existence) until after it was cancelled. It was cancelled because Fox didn't believe in it, they didn't promote it. And, of course, it had a bad time slot too, so I guess you're not all entirely wrong.

But primarily, this show simply wasn't supported at all by fox. People just didn't know about it. Nobody watches the Emmy awards. That's not enough. But for christ's sake, all the Emmy awards should have been enough to wake up the executives at Fox.
By the way, make sure it doesn't happen again. At least three members of Arrested Development's cast are now doing Archer on FX, which, like Arrested Development, is by far the funniest thing on television. I mean nothing else even comes close. Main difference is that it's not cancelled yet. So get watching it and get the word out. It's on Thursdays and we're in the second season now. First season is on Netflix (it disappeared briefly when the DVD was released, but it's back). Speaking of the DVD, if you don't have Netflix I assume you can get the DVDs from Redbox . . . or bit torrent.
Speaking of which, I still haven't watched last Thursday's episode. I need to get on that.