Once a hobby turns into a job it ruins all that makes it fun. The little profit he was making had less and less appeal as the workload increased until it reached a point where the money was not worth the time, and as others have pointed out, the stress/anxiety. That explains why he sold elsewhere at an inflated price and still maintains a social profile. And why he doesn't want to release the project to the public.
It's upsetting reading through the 80pages of the rise and fall of GenMDM. A very talented person and a loss to the community.
Just my interpretation of all this...
Good points, but to be fair, as far as I know Littlescale hasn't been selling the GenMDM 'out the back door'. Perhaps you are confusing this with the MidiNES which is being sold on EBay by a seller that seems to have a limitless supply.
It's uncanny how these two endeavors are parallel in many ways. But on the one hand I don't believe that Littlescale knowingly defrauded the buyers; where as x|k collected thousands knowing full well he couldn't/wouldn't fulfill the orders. In the end I guess there isn't too much difference in the outcome though, just scale.
Yogi