I think you need to keep a little perspective. You aren't the first guy to waste a bunch of time on a side project that didn't go anywhere.
1. this was a side project!?! you can't expect great results from a side project. if something happens, then great, if not, well .... you still have a job.
2. Don't you first need to _have something_ before it is conned from you. I certainly didn't hear of any great technical achievements that would have lead to success.
3. Maybe you didn't like the direction the project took. But it sounds like your partner was right about one thing, dealing w/ your dojo guy did get the attention of the Secret guru. It seems like the involvement of the Secret guru is the only thing the project had going for it at one point. And as I mentioned prior, you didn't mention any great technical successes that would have lead to a breakout.
Like i said, welcome to the club of failed side projects.