In hindsight I think they'll be taking a wait and see approach, but announced full on cancellation just so it was taken as seriously as possible. If they announced a pause, then you may risk teams doing stupid things in the face of quarantine measures potentially enacted. Right now, Europe is shutting down. All non-essential stores and movement is now banned. In Italy, from what I hear, people still tried to circumvent this. So being as definitive as possible right now may have been a factor in their decision.
Remember, we're VERY early in this. The incubation period is pretty long. And flattening the curve of those who need to utilize healthcare services means that this will take longer than just letting it burn uncontrolled.
I would expect that post control, they may announce either some sort of May/June tournament or giving everyone an extra year of eligibility.
On a general note, from what I am seeing so far in stores and commodity markets. Things are still flowing. Goods are still being produced. Grain futures are still being traded. The infrastructure that keeps society alive is well. PLEASE do not panic buy or do stupid things. STOP BUYING TOILET PAPER! Only 4% of COVID-19 cases involve intestinal distress.