I think they still offer great value products, it's just that they changed the landscape. They were one of the few companies that offered subs through an ID model. Now many more companies do this. Ditto for the multi-channel amplifiers, they changed the landscape here too. I've known about them for a decade or so but just bought my first Outlaw product last March, the 7125. It's a great amp, and improved the sound quality of my theater system. Perhaps what they do is now seem as par for the course instead of a hole-in-one, but it's still a tremendous value over traditional retail.
As for the processor problem, just about every smaller company has had major headaches bringing one to market since HDMI came to town. It seems like only the big boys had pockets deep enought to side step problems that Emotiva, Parasound, Outlaw, etc, experienced.