I can confirm that the email you received with the subject line "The Perfect Evil" was not a hoax.
Michael is working on a more detailed article about his allegations of the censorship that is resulting from the actions of key officials at CPIC in Baghdad. Prior to sending that email, he was aware of several other writers and reporters whose embeds had been denied, delayed or derailed by LTC Johnson. Since sending it, he's heard from many more, all with similar experiences.
To Michael's thinking, it is largely irrelevant whether the censorship is intentional and policy-driven or it is the inevitable and preventable consequence of incompetence, because either way the end result is the same--reporters like him are now being blocked from embeds.
The writer adds that Michael Yon will respond personally to the controversy very soon.
The Belmont Club - Censorship by the military?