It wasn't Sony that killed bleem!. It was poor stratigies, bad judgents, and mismarketing that did them in. They had "pretty much" won against Sony, but when they abandoned their PC base that was, IMHO, their fatal mistake. VGS, ePSXe, and other better and free emulators came out. bleem! was unable to recover.
floogie: We already have a fairly long thread about this very subject at http://18.104.22.168/forums/showthread.php?s=&threadid=7473. Feel free to look through what little information is available there. I'm not sure anyone other than bleem knows the exact details of why they suddenly ended (mostly because they aren't releasing any details). Locking the thread because it's pretty redundant (and in the wrong forum).