It's an interesting read regarding company mismanagement and backstabbing, but I think Warhammer faced more issues than just internal drama. World of something-or-another-craft may have been a slight competitor for them, especially with the Wrath of Some Lich Dude expansion landing right on their heels.
The game certainly was rushed, with a bunch of major content being cut at the last minute, and the engine feeling very... clunky, I guess. It just wasn't as fluid as WoW, either because latency wasn't hidden well or because the resource demands on non-super-cartoony graphics are significantly higher, but I suspect the ten years or whatever of code optimization Blizzard's engine has had probably help too (remember - that thing's been adapted from use in WC3).
The warning about KotOR is kinda a downer. It'd be a shame to see that game suck, but a bad Star Wars MMORPG wouldn't exactly be a new thing.