Regardless of why or how Necromancer is in the state that it's in (as well as a lot of other d20/3ed companies), the thing that bothers me the most is how difficult it's becoming to get certain products.
Writing and play-testing Trailblazer (shameless plug, sorry) really rekindled my enjoyment of playing d20/3ed. I'm sure a lot other people feel the same way with systems like Pathfinder, Fantasycraft, etc.
Because of that, I've been trying to track down some of the Necromancer modules lately and finding it rather frustrating - and expensive! Seems to me that there are still customers out there to justify a reprint of modules like Lost City of Barakus for example.
I think they are pretty much all available at Drive Thru RPG which should have a print-on-demand option soon, but finding them in print copies is getting more difficult (and expensive on sites such as eBay). I don't think they're looking at doing any more print runs of existing works.