I've suspected Megaman was dead when Inafune basically told Capcom "I'm leaving, and fuck you." with about that degree of tact too. It was a very...forceful display of rudeness in the Japanese business world; Inafune was burning bridges, and burnin' them bright.
Suspected it for MONTHS now. Today, I see that I am sadly proven correct.
After that, it's not surprising that Capcom doesn't want to continue working on Inafune's franchises, nor let him continue working on them himself. Perhaps it's not good business practice (Megaman is still a valuable franchise), but that's what Capcom's going with for now.
Pity too; Megaman Legends 3 would have breathed some badly-needed life into the 3DS.