Does this mean he didn't get the rights to the game (whichever it was - Freespace maybe?) that he wanted to?
I bloody well hope so. Every plan he mentioned in his ambitions for that game went directly against what you'd expect from a Freespace game (ground combat? When the main enemy doesn't even try to capture planets but just blows the hell out of them?).
One of the Volition employees indirectly posted a message on HLP stating that he doubted that DS could even afford the license, and also pretty strongly hinting DS wouldn't have any support - i.e. storylining - from the original developers if he did.
Of course, DS also said this stunning(?!) new engine would allow him to an FS3 for a quarter of FS2s budget and in about 6 months.....just a shame it already looks about 2 years out of date (seriously, Flashpoint still looks better than those screenshots - at least it had more than a single cube-building set in a few square miles of low-res textured flat ground)