I can't help thinking the bitterness on both sides is pretty sad really :-(
I make no secret of the fact that I'm happy with OS4, but I don't own an A1* nor a Pegasos. As far as I can tell, MorphOS is a reasonably seasoned product and it would be a shame to see it dissapear. For all the antagonism, I think both OS's benefitted from each others existance in that each side is determined not to be out done by the other. MorphOS has achieved a remarkable level of backwards compatibility that OS4 is yet to match, but I don't doubt that it will do at some point.
The problem is that the bitterness has led to a situation in where a lot of users can't even begin to appreciate that the "rival" system has anything to offer them and are too prejudiced to even entertain the notion.
At the end of the day, it looks like it is Genesi doing the dirty on MorphOS development here; there's litte point in dredging up the red camp/blue camp thing - you have more immediate problems to address.
-edit-
*Although I have had loan of an A1 XE for a while. The DMA issue (as far as hard disk goes, that is) that is always brought was not in evidence there. This seems to be a bit of legacy FUD :-D