Yes that's right, Toontown Germany has been officially shut down.
But what is really wrong is that Disney declared that it was impossible for them to trasfer the characters to the american servers and so they had to delete them all!

Translating the german homepage we understand that the only reason Disney gave for its behavior is that "the services are not identical". German players will be refounded of the unused game time but they will have to register again on toontown.com to play on the remaining servers.

From the note it is also clear that Toontown didn't met Disney expectations.