To me, the big problems with Torque outside pipeline were: 1) Tooling (only the 2D engine and old 3d terrain builder had really nice WYSIWG tools 2) The damn scripting language... wish they'd moved to first class support for external bindings or an internal framework with standard 3rd party languages 3) Super old school, nasty game class structure (eg their "Player" class)... tons of inheritence and megaclasses that are just gross.
I think they were working on lots of that stuff before they sold the company, in addition to modernizing the graphics, etc. Don't know how far any of it got, but hopefully it is cleaner now.
Remember the engine was built in the late 90s and wasn't rearchitected for years, so it was what it was. Might be way better now, I don't know.