I am both saddened and relieved at these news.
Saddened because there were things I liked about it, and think it had potential. Also for the sake of Trapdoor.
But relieved because so little progress was made, at least as far as I could see with the web beta. It was useless, as others have said. You could not even make characters in it.
As for this delaying software, I cannot see it. Nothing happened with Dungeonscape.
(I also preferred the name Morningstar. Sounds much better than another weird neologism. D&D Morningstar would have been better.)
Perhaps the license could be given to some company that already makes software like this. Character building, scenario and campaign management, possibly battlefield implementation - it's not like it is untrodden ground.
Rather give us something that is fairly good but working, and then refining it, than trying to get it perfect in two years time.