WWE.com addressed the reports of UPN nixing the Hassan character in an update this evening:

“Due to the unfortunate terrorist attacks in London on Thursday, July 7, which coincided with our pre-produced WWE SmackDown! program, UPN has asked us to be sensitive to the usage of the Arab-American character, Muhammad Hassan. We have agreed with UPN, and have not had the character on SmackDown! since that date. It is uncertain as to whether or not the WWE will continue with this character beyond this Sunday’s Pay-Per-View, The Great American Bash.”