Yeah, I think they're done for, sorry to say. I don't think they got the result-for-work that they wanted. Personally, I'd rather they just use those resources, however small they were, to create new 3D games. I don't really need to play Balloon Fight in 3D, you know?
I don't think so, but the concept needs a revamp. Excitebike could have been so much better if they would have allowed for track sharing. Online (even local) multiplayer should happen for applicable titles.