ugh, that story is ugly. a mixture of development hell and pipe dreams by the devs.
frankly, i side with the "it was a bad idea to start with" camp, just because you can imagine it, doesn't mean you can deliver it.
"Before Dishonored, Arkane was making something quite different"
...except that style of architecture looks almost exactly like the first screenshots of the original game. it happens, projects come and go. I'm glad they finally got Prey done though, which was also up in the air multiple times.