I dunno if Joe and his camp think this is good publicity, but it's not. You are in a group called SLAUGHTERHOUSE the whole point of your group is to be cutting edge/dope lyricism. You have an upcoming album and a chance to get a fairly large buzz off a perfectly set up opportunity. Joell responds and gets mostly postive feedback. Joey who is a 10x better rapper supposedly cuts a 5 min verse directed and Kendrick and decides not to release it? Somethings wrong with the math, i know i can add y'all.
Possibly because Joe's camp feel he is taking it to far, over a jab, which wasn't directed at them, or Joe
Also JB himself has dissed NY rappers and NY few times before, so I guess it just comes across as him trying to garner publicity off the back of K Dot in a negative way.
It could backfire on him, and SH have a good situation goin on right now.