What happened at WW years ago was more than just a deal and a cut out. These kids, cause they were sooo young! Were on a train of production, creation, development, and popularity that there were many pressures that sent things the way they did.
At the time of the fallout Rein-Hagen was in his early 30s, can't call that a kid anymore nor young (it's over when you hit 30!

).
Many folks going into business, especially pnp RPG business, have no business being business owners. They can be great people, great creators, but they are most often horrible business people. And when people age, their focus changes, in this case it might have been the focus on the TV Series or it might just have been other things, people grow apart all the time. If it's the TV business, and it's not something the other two partners agreed with, it's not strange that there's a fallout when the rest of the partners focus on the business... I don't know the specifics, and this is pure speculation, but I've seen enough small business drama. It's also a reason why I would never start a business with someone else as a partner.
I always thought that the Exile sci-fi game he was working on had potential, it was interesting and it's always in the back of my mind as something that might be an interesting setting (the rules were a mess at the time), but just requires more work.
To me Rein-Hagen reminds me of a less successful Jordan Weisman (Fasa, Wizkids, HBS, etc.). Someone with very cool ideas, but no long term staying power with those ideas.