Rare was still a good developer. If nothing else, Perfect Dark 2 would have rounded the Cube's lineup nicely. It probably wouldn't have been delayed until the next generation if it hadn't had a change of platform, come under new management, had half its team leave it, and the remainder border on strike because of crap pay/management either. Ian has pointed out why SFA was delayed, and Rare made plenty of great games before that.
During 64 generation, I looked foward to Rare's games more than EAD's. Blast Corps (which is in desperate need of a sequel), Diddy Kong Racing, Goldeneye, Banjo Kazooie/Tooie, Jet Force Jemini, Perfect Dark and Conquer's Bad Fur Day were all great games, and that's eight in a generation. Combine those with the good-but-not-great Killer Instinct Gold and DK 64 and that's ten games, 80% of which were of a very high quality. How many did EAD make?
Spending profits on studios that were either nonexistant (Retro) or made crap games (N-Space) is not a good strategy.
EDIT: Opps, my bad about Perfect Dark 2.