What I had most recently read, was not a condemnation of another iteration of Dominions - merely that it was not the next offering to be made from Illwinter.
I do believe the word "break" was used, in the temporal sense, rather than the permanent.
That said, I can hardly imagine they'd want to work a deal that allowed them creative oversight - the video game industry seems to be the worst at actually staying true to the creator's vision, even when said creator is allowed to be in the same room.