I'm not so sure Geoff. From the feedback from happy forumites about the difference in service between the two companies, many were planning on making their next engine a CAE when the time came. Sonex had just announced the OEM deal. Etc. Unfortunately for CAMit, the time didn't come soon enough.
I'm not about to go into the IP arrangements etc - it's already been covered by others in more detail - but I assume it was legal and robust enough to not have Jabiru stomp CAMit out right at the emergence of the first CAMit-modified engine. Oscar would have more details on what some of the early modifications were, and we know these then evolved to encompass a complete engine as Ian tweaked more of the design as time went on.
CAMit used to make the complete engine for Jabiru (excepting cast components and other items like valves, springs etc). As time went on - and this has also been covered elsewhere - Jabiru sought to lower costs through sourcing items from other suppliers. Cast rocker arms and camshafts, for example. What other option did CAMit have, when they were slowly getting edged out of the supply chain? Selling their own engine would have had a higher profit margin for them, kept jobs in-house and reduced the risk if or when Jabiru were to decide to source complete engines from somewhere else.
Reports that the new Jab engine at Oz-Kosh were developed in house and will be assembled under their roof when the time comes almost tell me that this may have been down Jabiru's chosen path after all - complete in-house control of their product. Not knowing, I can't say so don't want to comment further there. When Jabiru eventually rolls over to this new engine of theirs, where would this have left CAMit? Without their own product after all that, and suddenly, no orders from Jabiru anymore? Not at death's doorstep, but halfway down the hallway, commenting on the hat stand.