Sounds like a typical corporate culture that, while heavily flawed, was at least all in sync with each other.
Uproot that culture and have outside influence, in this case Activision, disrupts that balance of egos and talent that had, until this point, work harmoniously with enough creative freedom and minimal oversight since they had a proven track record of sure-fire success, and watch the glass castle come crashing down.
Sounds like Activision didn't care about that and, to their benefit, did their job of looking after an expensive investment. It's easy to say they should have backed off and let the talent work, and that's partially true.
It was a very volatile situation as any collaborative work requires a certain degree of cooperation, teamwork, and mutual respect. But in this case, Activision didn't respect Bungie's creative pedigree (or Martin's music), and Martin in turn has no respect for Activision's corporate responsibilities.
Everyone and their dog called the 10 year deal a bad decision the second it was announced and who it was announced with. If the situation with Infinity Ward is any indication, Activision doesn't respect the creative people behind billion-dollar successes because they care about a brand, not the people behind the brand, and Bungie and Martin made the mistake of thinking that their brand carried more weight than Activision's bottomless funding.
Nobody comes out of this looking good. It's becoming quite clear, even if Destiny is successful, it's a game being led by businessmen rather than creators. You can see it and feel it in every decision they make, in-game and out, on their forums, through customer service, through how they handle patches and what their priorities are.
"Bungie" as we knew it, during their halcyon days of Halo, really doesn't exist anymore. The leadership and infrastructure has irrevocably changed at a core level. It can still be good, even great, and I'm sure it'll be financially successful, but it's not the same company once celebrated as one of the most gamer-friendly on the market. I didn't even play the Halo games or own an Xbox, but even I was quite aware of just how beloved Bungie was with their fans, how involved and active they were with them on a daily basis and on such an intimate level. No way are we ever going to have anyone stand up to Activision as someone in Bungie once did to Microsoft and argue that "this content should be free eventually because we should invest in players, not DLC".
I'm not happy with Martin's behavior, I'm not happy with Activision's behavior, and I'm not happy with Bungie's behavior. I'm angry at everyone. And Destiny certainly hasn't felt like a "it was worth the hassle" release to justify the whole sordid, stupid ordeal either.