What this seems to be is that a small group of unpaid MorphOS developers have decided to hit out at Genesi on their own. Fine, certainly their right, I'd probably do the same. However, in trying to do so, they've poked MorphOS right in the eye. They haven't hurt Genesi though, just shattered MorphOS's user confidence, smeared its reputation, and made it a bad day for everyone who supports MorphOS. Pretty unfair, actually.
MorphOS development will continue, that much is certain. MOS doesn't belong to Genesi and the Pegasos is owned by bPlan, Genesi are just a reseller. Nothing much will change.
Anyway, I'm guessing that there will be an official statement in the next few days, some kind of damage control. Certainly user confidence needs some kind of salve.