On the one hand I really dug Eternal Darkness, and Silicone Knights made some great damn games back in the day.
But their track record as of late has been such shit, of course this was going to fail. They sadly drove their reputation into the dirt.
I'd really love to see them make a sequel, or spiritual successor, or whatever - but I'm not going to put any money up for it unless they can prove that they can still make good games.
Really this was kind of inevitable. If anything they need to spend the next several years trying to repair their rep, then maybe they can think about trying this again.