Irrespective of the reasons behind this decision (which I am guessing is conflict over valuation numbers), I am happy to see this.
Snapdeal has its own mojo and merging with FK wouldn't have resulted in a positive for either of the two.
Flipkart + Snapdeal < (Flipkart, Snapdeal)
For Flipkart - I really don't know why they even got into this discussion? Investors? hell yeah !