My guess is that someone goofed.
1. If you buy a game, it will always be available to be downloaded via Xbox LIVE. Microsoft has stated that time and again. You may not be able to buy it if the rights to distribute terminate, but for existing licensees the service will maintain a copy of the game for download. Likewise for DLC.
2. Microsoft owns Lionhead and published the game. It would be REALLY hard for them to have a dispute with the publisher or the developer that would require them to stop publishing the game via Xbox LIVE.
My guess is a backend database that houses the game content is offline OR some of the data has been corrupted. The pointer (link) on Xbox LIVE Arcade is still there, the problem is it doesn't result in a downloaded game.
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