Lars was the founder and did put some of his cash down to start the company. He also brought in Hartsman to be his tech/creative guy. Butler was a former EA executive, and part of me wonders how much of their crappy corporate mentality he brought to the table. If I had to guess, I'd say Hartsman was never sold on Defiance and that might have hastened his departure in a political fight with others. The fact Defiance somewhat tanked and they laid off most of their staff probably opened up the Board's eyes on things.
Bringing Scott back to Trion is a good thing, in my opinion. I hope he can build a nextgen MMO, but really he might be focused more on making Rift more profitable.