Just read the announcement from Nostalrius, sounds like their worst case scenario was true... Blizzard met with Nostalrius staff to head off the crisis, Blizzard made assurances and overtures to get the crisis under control, once the panic died down, Blizzard cut Nostalrius off, Nostalrius tried to force Blizzard's hand, Blizzard called their bluff, but left Nostalrius enough rope to hang themselves with.
But at least we have an outcome now, thank god.