Peter Jackson released from making LOTR prequel...

See, I'm thinking the reason Peter Jackson allowed it to get this far (this wasn't a one-sided thing, I'm sure) is because he wanted them to know he was serious about it. They didn't jump on the train when they should've and let him have time to get involved in things like King Kong and the like, when they should have at least inked a deal with him once Fellowship hit big. I don't think New Line took him seriously enough, and now when he played his cards they cut him. It can't last, with the way the trilogy played out and the fan base that supports Jackson now, plus that deadline looming over their heads - they surely know that a half baked attempt of a movie pulled together, even on a preliminary level, within a year won't work out. Jackson will probably win out in the end with a better deal, a better cut of the profits, and just as much creative power over the project as he ever had. The only downside is that we'll be waiting that much longer for it to come out.

Jam it back in, in the dark.

No, New Line 'let him go.' It's not over, anyway. Read between the lines and you see that there's still a chance (although we don't know how good that chance is, currently) that he'll helm the thing once it gets underway. Eventually.

There's nowhere I can't reach.

Well and succintly put.

Peter Jackson: 1
New Line: -1

This thing is sticky, and I don't like it. I don't appreciate it.