I also caught the fated, ironic similarity between DNF and Did Not Finish. Ouch; like naming a ship "Enterprise" -- things are bound to get strange.
Isn't the name for this in movie making called "production hell"? The number of movies which were in production hell but came out and were pretty good, you can count on your hands. The ones which were actually really good can be counted on one hand.
In all likelihood, the kind of guy who comes up with Duke Nukem is not the kind of reserved, conservative, pillar of artistic integrity who would walk away from $30M just to let his pet project die. It's more likely that the terms of the contract were not able to be fulfilled due to some other reason, such as toy, movie, or comic rights being untransferable, etc.
Anyway, who knows if this is the final, final death? Fallout was supposedly dead when the original dev went down, and look how that's turned out.