Furnation was part of a flawed model, really. The 'webring' hosting of 1997 or so was to share costs of a then highly expensive service, but anymore paying a piece to a person like Nexxus is on par with just getting hosting yourself, and far less flexible. Hell, that's been true for years. Instead of just admitting it, Nexxus tried to expand, but without really a base to jump from, the Furnation publishing branch and SL ventures really have been little more than desperate grabs for new capital to squander, and shitpoor. He should have just backed out and started individual aspects in other sectors with purpose, but few furries lack that kind of attention to the situation they're in.
Oh, and it doesn't help that he's a massive turd who spends more time dicking around with other people's money on SL than breathing...
Amazing it took until 2008 to die, though.