Indeed. We have always been aware a C&D might occur, and the risk is now heightened. To that end though, we are continuing with work as planned, just being even less vocal about updates.
We still have every intent to release FotG in one large push when it's ready. The main reason we have not released in stages is because we likely only get one shot to release before the C&D risk becomes untenable.
FotG has SP focus, along with a rich mission editor (FRED) and can run on lower end PCs, not to mention Linux and Mac (all of which cannot be said for EA's new game).
Thus, a niche still exists for us, and we are taking precautions to ensure we are able to reach a point where we can fill that niche.