It's a shame about the licensing issues but it seems like neither party could work out a deal to keep this thing alive and publicly available. I guess ultimately it's the Reason users who never bought it first time round that suffer as a result. Algoritm is wonderful but it's simply not a DX7 clone; and sometimes that's just what a song needs.
I had hoped for a while that perhaps the original developers who created PX7 would be able to re-release it without the Propellerhead badge but it looks like that won't be happening now; plus it seems impossible to actually find out just who was the mysterious creator of this mythical Rack Extension....