This was explained to me by someone who knows the handset OS integration business: Margins are low and handset makers know they can get Android put on a handset cheaply, by people who specialize in doing it quickly and cheaply. There is no room for a premium player like Cyanogen to provide an improved Android. I suppose many of the Cyanogen people will get scooped up by Google.
unfortunately, all I can say is....It took this long? I love cyanogen, and have loaded custom roms for years with it, but this was really a doomed from the start adventure....