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badgenome said:

Apparently one of his brilliant ideas was to force the player to set a Chinese-American family on fire. Ugh. Jaffe is a perfect cretin.

I think you've misquoted. The game supposedly had a part where a soldier was ordered to do so, which was supposed to cause a moral dilemma for the soldier and the gamer. Plus, how many innocent people have we all killed in video games? Why is something like this so terrible when I've been able to do stuff like bludgeon old ladies to death and drive over their corpses with an armored vehicle for many years now? I know why, because everybody loves to have David Jaffe.

Anyway, I think this game was going to be cancelled even if Warhawk hadn't come along. According to Jaffe, the studio weren't good at making a story driven game like this and they were all beginning to lose interest.