I heard the same presentation at the TOAD Computer Fest either in 93 or 94.
In talking with Steve Cohen he says or said the problem was in the release of use of the TOS as it was under Atari's control and that would create problems. At that time they were trying to buy the rights to use TOS for US production of a computer.
The same thing with the barracuda board for the Falcon, problems with timing and compatability problems and other things like money for R and D..
