Im not surprised; I have said (if you'll pardon the big headedness) it was an ambitious product moving into a very fickle niche market (that is still only on the verge of "mainstream") and, most importantly, possibly moving into Apple territory (never going to end well).

Im a little surprised it ended in an internal dispute - my thinking was the funding would run out and the product wouldn't be good enough to sell well. (and then either Apple launch a tablet or the market just fizzles out). With that said this could still be the cause - it's at this point people would probably start to look really hard at the sale point economics.