It sounds like kind of hard ball that's being played by Fusion Garage could almost certainly be overcome with some effort. Not to justify it, but it's not uncommon for people who feel like they're getting screwed to renegotiate at a time when they feel they have leverage.

My guess is that Arrington was overwhelmed with how out of control the project got. He jumped at the best opportunity to get out of the whole thing, without looking like he just flat out gave up.

Like some people do in relationships they want out of. "Oh, fine, don't want to see that movie? Well let's just break up then!"