Pylons isn’t being “cancelled”, and it will continue to receive updates. That said, the “future” per se is in Pyramid. On the mailing list is has been referred to as Pylons 2.0. It is fully tested and better documented than Pylons 1.0, so you might as well jump aboard if you’re fresh.
Pyramid is essentially the merger of Pylons and Repoze.bfg. Read more about this on the pylons-devel email list.
Especially, in this introductory email. If you have deeper questions, hang out in the #pylons, #pyramid, or #repoze irc (freenode) channels.