Hawk effectively going belly up and selling out to TTC didn't help one bit there, although at least they're getting the stuff back into availability now. I do wonder if they haven't permanently hurt their US distribution though, and without that the games are going to really struggle to grow.
I've heard a slightly different version; David Lewis, the creator, really struggled with the running of the business, distribution and other administrative tasks; it was not what he had set out to do, or apparently was very good at, and consequently, things did not roll out as well as they ought to have.
So, after some toxic fallout after the Dropfleet Kickstarter, he made the (difficult?) decision to sell the company to TTCombat, so he could concentrate on what he really enjoys (and is bloody good at!); designing and creating his games, as he's remained onboard as the lead designer. TTCombat will handle the distribution and other 'boring' stuff from now on, so in the end, it sounds like everybody is winning.
Some momentum for the IP has definitely been lost, but I've got good hopes that it will pick up again now that everything is settled down; retailers have sold off their old stock, the first new units and rules are starting to come out, under the TTCombat flag, so I do think everything is starting to roll again.
The games are certainly not dead. In fact, I'm secretly holding out for the first signs of something like Dropsquad Commander, a skirmish game, in 28 or 30mm...