If I recall, he was one of the reasons Halloween III was so different. I think he or possibly some other producers wanted the idea of Halloween movies to be centered around the holiday rather than the one character. Turns out people would rather associate Halloween movies with Michael Meyers and the movie bombed, and he was quickly brought back and his return heavily advertised.
My knee jerk reaction is they wanted a Coca-Cola Classic success, so they had to make a New Coke. The timeline fits, think about it man..