Here's the Press release...

The Edwards campaign just released statements from Edwards and the two bloggers in the thick of the controversy, and it looks as if the two won't be fired. The statement says Edwards was "personally offended" by their writings, but that he also believes in "giving everyone a fair shake" and that he's "talked" to the bloggers, that they've assured him "that it was never their intention to malign anyone's faith," and that he takes them "at their word."...read on

(UPDATE from Nicole) I really think this was the best possible outcome and for that, Edwards deserves to be congratulated. We're still almost a year from the primaries and this was clearly the first shot off the Swiftboat prow for Edwards.

But the netroots' work isn't done. This particular gambit might have failed, but there will be more and we must be prepared to face them and push back. Many people--on both sides of the aisle and in the media as well--were surprised by the increasing power that you collectively exercised as a member of the netroots during the 2006 elections and they were threatened by it.

So let's give props to Edwards for some "outside the Beltway" thinking, but keep alert for any more Swiftboat attempts to derail Democratic campaigns.
Matt Browner Hamlin at HuffPo has more.