We have to take into account numerous variables, which still leave us guessing at the end of the today.

made it clear that by the late 90's, the band still had to turn in two studio albums to fulfill their contractual obligations. He also maintained the SSV "album" was accepted, and the way he phrased it, that thing along with their years-long "strike" freed them from EastWest. Maybe, one more album remaining in the Warner deal.
(I distinctly recall an EW quote from a defunct(?) TSOM website, maybe 1969 and all that, They debunked

's big-words separation announcement by saying "We're glad he hasn't lost his sense of humor". Can't find it now, so can't vouch for that.)
In '98-'02,

made various overtures to other big labels, hoping to secure a new deal for the Pearson/Varjak album. He made a point about being dropped by EastWest in lieu of the SSV album, quite possibly to signal other labels the band would be up for grabs. Just that, let's assume, the interested parties found the band still tied up with Warner.
Backtracking in public would've made

look like an oaf. Pride aside, it could've put him on a backfoot in his effort to secure a separate label. Surely, anyone interested would've learned of some legal miasma eventually, but foreknowledge could've discouraged them from even having meetings. Maybe that's part of the speculated price-tag of the fourth album; recording expenses
and Warner pay-off.
Therefore, the fourth album may have never arrived because some folks at Warner grew weary of him, and any other label would have to pay a high price to release it. The money may have never been there even in the late 90's, because Warner demands a big piece of the pie and any alternative would have to treat the Sisters as a "major-label act" in terms of investment. They'd be on the red in the books for a long time, unless the album would sell insane. And this could've been the predicament even before Napster became an industry-wide topic.
Since 2005-6, the band have toured more extensively, muchly thanks to the efforts of Chris to make their gear more transportable.

has switched his tune to "
we don't have a label, don't need one - fans hear new songs in shows anyway."
That implies, with this train of thought, that

has made his peace with the overall situation, taking control of the band's destiny again by getting them on the road in regular intervals, writing new songs in his leisure and putting them in a drawer. There could also be legal ramifications from Warner should he spell out certain things out too clearly.
The current situation seemingly allows him a lifestyle he likes, maintained by sporadically touring his golden oldies and staying mum about certain things. A checkmate he never hoped to have - at the price of never releasing another song again.
Maybe.