Nope, it WAS lack of taste.
"its distributor, NDD, has refused to distribute the edition on taste grounds."
Daily Telegraph article
It's not banned, it's still on the internet. But lack of taste can certainly stop the print addition, since it depends on newsagents wanting in their shop what some may consider a very sick joke. I personally consider it very funny. Mostly cos it's sick. Hmm..
It's a wonder that the onion and the chaser don't get more libel suits thrown at them. Not that they deserve it, but some companies like to dish them out after the slightest provocation.