I don't get why people think HBO gave up on Deadwood. The creator gave up on deadwood, he wanted to do another show.
Yes I believe it will continue, but lets be honest the viewership numbers are good by HBO standards but they aren't great. This seasons premieres numbers were up dramatically compared to last seasons numbers. In perspective, this years numbers are about 40% of the numbers that Deadwood got. It is also far below the highs of shows like soprano's/oz/6ft under. It also is lower then other HBO shows like curb your enthusiasm, rome, and big love.
Since the middle of the first season, I have really enjoyed watching this show. The first half of the first season where entertaining for me to watch, but for the wrong reasons. IMO this seasons has been killing it.
Yes I did see the porn thing that sookie was looking at. I wasn't sure if it was him, and didn't bother to rewind and look again, but at a quick look it did look like him.