Dark Night of the Soul to be shelved?

Curiouser and curiouser. 'Dark Night of the Soul' - a music/artistic/visual/Lynchian uber-weird project headed up by Messrs Sparklehorse, Danger Mouse and David Lynch looks likely to remain unreleased. An album featuring Julian Casablancas, Black Francis, Nina Persson, Gruff Rhys et al has been recorded and is ready for release but now it appears this ain't the case. A book of over 100 photos by David Lynch looks likely to get its official release but will now come with a blank CD-R featuring the label 'For legal reasons, enclosed CD-R contains no music. Use it as you will.'
All of this is a damn shame of course as the album is a treasure. The whole dispute stems from a disagreement between Danger Mouse and EMI. The upside of this is that the album is presently being legally streamed at NPR.