Rabbit, I believe they were trying to develop ToD (CT or the Mission Theater or whatever it was back then) within AH1, but realized that the game couldn't actually do it. IIRC, eventually the updates and changes and whatnot snowballed into an entirely new version, which we now play. Granted, for a while there wasn't much, but as they've made whatever progress or met whatever obstacles, we've gotten improvements in AH2, like the object optimization thingy, and the updated plane models.
However, I have to say it is nice to know that the MAs aren't going to be ignored, and things like the arena format changes, and new planes and terrain updating and such are reassuring. I'm sure a lot of people felt the customers were being ignored in favor of luring new customers to replace them, and it's good to know that's not going to continue to be the case.
I don't envy HTC in the position they're in, but as has been said, the candor is appreciated, as even seeing someone from HTC posting this much is a welcome surprise.
<-- interested in ToD, but still primarily an MA dweeb