Like all great shows, Angel was inevitably
cancelled. Even though Joss and the writers wanted a sixth season (they definitely had the ideas for it, as Angel: After the Fall clearly illustrates-- no pun intended) the networks just didn't see it in the cards. Though Angel proved that it could definitely stand on its own two feet after Buffy ended, this decision was made before the second half of Angel Season Five actually aired. My guess is, the WB didn't believe that Angel would work as well without Buffy (oh ye of little faith!) and told Joss at the beginning so he could wrap up the series and make the final season a smash success. At least that was thoughtful of them to do that, so the Angel cast and crew could "make arrangements" so to speak for the end of the show. And it allowed Joss to try some crazy ideas (like Fred to Illyria) so it wasn't all THAT bad.