Well, thanks for being so descriptive there Obonicus.
Well, did you read the thread? Again, Lair wasn't just a technical disaster, it was a gameplay disaster too. They apparently had projects canceled by Nintendo before they took up Lair (Pilotwings GCN), and afterwards they apparently had trouble getting publishers. There was talk that they were trying to get Nintendo interested in a Kid Icarus project (and had started development on something to show them), but there's no confirmation of that besides the one IGN guy. PS3 development being difficult didn't help, but if fully-funded game made them die, they couldn't have been that healthy to begin with.