Well, yes and no. What's known for sure is that Capcom has dissolved Clover, but motivations are a lot harder to ascribe. All the comments in the linked article about Capcom doing it because of Okami's poor sales are, notably, unattributed and presumably the blogger's; all Capcom has said is that they want to 'concentrate management resources', which may mean that they just don't find running independent studios a useful way of spending their time or money (it isn't the first they've shut down). For a slightly different take on it, have a look at Joystiq's article, which suggests that it may even be that Clover jumped ship and Capcom is covering.

And yes, Okami is a gorgeous game. *grin* By far my favorite this year, the first RPG I've played to completion in forever. I presume you might've seen already, but BitsBytesPixelsSprites has a pointer to 16x12 wallpapers, as opposed to the 12x10 versions on the US site...