Taking a break and working on other projects for a short time is a great way to jostle around those creative juices. By selling this, I wonder if they are hoping to put some of that money into Reds. A lot better than doing another kickstarter.
They are working on other stuff than Reds. For instance The Cave just came out, that was done by another team. This is also good for everyone to let all the different double fine teams work together.
Lets not be like publishers and get too concerned with the micro details - that's not why we have the privilege of being allowed to see those micro details. Obviously they were too ambitious, but I'd rather wait and get something better.
As with Reds, I think I am more interested in the footage than the games lol.