Should I use Pylons or Pyramid?

Pylons isn't being "cancelled", and it will continue to receive updates. That said, the "future" per se is in Pyramid. On the mailing list is has been referred to as Pylons 2.0. It is fully tested and better documented than Pylons 1.0, so you might as well jump aboard if you're fresh.

Pyramid is essentially the merger of Pylons and Repoze.bfg. Read more about this on the pylons-devel email list.

Especially, in this introductory email. If you have deeper questions, hang out in the #pylons, #pyramid, or #repoze irc (freenode) channels.

You want to go with Pyramid most probably. It may seem like it's a more complicated system, but it's actually much cleaner and very intuitive. Furthermore, the documentation for the project is simply awesome and in my opinion, even better then the django project which is well known for it's documentation.

That does not make it "like django" however. It is still lightly coupled and you can use whatever template, database, form, session management system, etc that you like.

It's worth noting that Pyramid is a base framework and Pylons is being built on top of it.

If you plan to start new project, migrate or just to learn framework I recommend to use Pyramid.

Pylons will stop it's development.Meanwhile Pyramid is a continuation of Pylons. Thus, it's code is stable. It includes most features from Pylons, adds some new usefull features.