If anyone remembers the very first bioshock had like 3-6 years of various on and off again working and reworking of ideas behind it, do people remember the 'slug in wheelchair' sketches?
Now imagine Ken wanted to have a similar long term working and reworking of ideas.
now imagine paying the salaries of 200 people for those years while producing very little final work.
Yeah, this does suck for the people affected, but I'm not sure I can put the moral responsibility on Ken to always produce another game with that team for the rest of his life.
Is it not his decision whether he wants to make another game or not?
Anyway, I suspect that's what's happening here. We'll only know with time though