samenzweringhe goes on to talk about teamfortresstv and essentials having a rivalry during i61 - tftv decided they were not going to produce i61, so essentials decided to do it
This isn't quite right. What happend was that the long time admins, Nymthae and Firestorm, that actually organised the lan competition, liaised with Multiplay and worked with production both "retired" at the same time. Nobody else stepped up to replace them so Wolfmachina took the opportunity, but he also used it to take control of the production.
This wasn't really announced either semi-privately or otherwise, it just leaked out slowly as a result of individual conversations effectively setting the tone for everything that has followed. TFTV never had a chance to continue production really whether there was a collective will to or not.
Obviously not everybody was happy with the way this was done, but mostly people got on with the job and judging from the viewer responses none of that really came across.