I was of the impression it's Camelot that won't work with Sega, not the other way around. If I'm not mistaken, they were fed up with the way they were treated back in 97-98.
It's a bit of both now. Camelot did say that but SEGA pissed off with what they said won't work with them now, mainly because the last producer had his own idea for where the series should go but also there may be some resentment at least with the old sega that camelot was being ungrateful. The fact was clearly shown when they asked Climax to redo SHINING FORCE 1 for gba and not Camelot. I dunno if they still hold grudges with eachother though since its become segasammy, but truth be told, sega has always been a tribalistic company at the best of times and don't take kindley of being knocked.
