I really don't find this offering odd at all. Anyone who's been following this forum must be aware that many in Outlaw's customer base have been at least impatient for a pre/pro with more advanced features than the 990. As the 997 has not been forthcomming, Outlaw is offering a product which they are endowing with their considerable prestiege to address that demand as they did with SMS. Though they are offering it at a price point that is not particularly encouraging a lot of sales.
I think this is merely an expression of sensitivity to a vocal part of the user base.
They can't be particularly pleased with Sherwood at this point, but I would think an alliance between Outlaw and Onkyo would be very unlikely as it doesn't suit the market model of either company.