Well, they'd have HAD funds if they'd been able to decide on a direction for DNF, finish it, and get it on the market. I mean they only had about 10-12 years to do so...
They'll probably sell the franchise to someone else, and I say about time. I don't have a lot of sympathy for 3DRealms(the company) after some of the insider stories I read. I do feel for the developers, artists, etc. who wasted their time on this and might have to put it on their resume.
I found this tangentially-related article on Duke interesting:
http://news.bbc.co.uk/2/hi/science/nature/4908484.stm