It was a sad day when Lucasarts had its corporate restructuring and gained its new president. I don't think it's any coincidence they've produced tripe since. Kind of like Blackisle after 'the event'. After that everything they brought out was crap.
I have this theory, that it's basically because talented people can do whatever they like - writing, music, art, the list goes on. Most probably decided to work on computer games as a quirky hobby. Therefore when they get badly treated they're quick to move on. By that reasoning, the only talented people that will remain in computer game production are programmers.