Or maybe they just waited for it to be completed on purpose. And are now just saying they don't condone it as a formality. But if that's the case, I don't see why they didn't just openly embrace it, or flat out ignore it. It's been seventeen years since they did anything new with it. And there's still going to be people who would rather purchase the 360/wii/ps3 emulated versions of the originals.
Maybe they are in the midst of making a new full budget modern remake, or a new entry to the series. That would be a good reason to pull the free competition.
Or maybe they were so impressed with it that they wanted to work out a deal to enhance and sell it.
Whatever the case may be, V5 will still be floating around somewhere for those who want it.