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I don't get it? Why would they want to take away the channel?
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AFAIK, it sounds like SpikeTV in its current form, was never approved by the CRTC. The CRTC approved The Nashville Network and that type of programming. They also approved MenTV, and even though they don't share the same programming, it's the same theme. they both claim to be the first network for men. (and technically, MenTV launched first).
Canadian channels just can't go around changing the programming they were approved for. Much Music got in trouble years ago for airing Ren & Stimpy (cartoons aren't music videos). TechTV went about things the right way when they wanted to air Anime Unleashed in Canada, they actually applied to the CRTC. They were denied, of course, but at least they followed procedure.
I think that's what's going on, but I could be wrong.