True, although they maintained a lot of momentum after the acquisition. But maybe that's the answer - perhaps Adobe slowly starved the dev platform teams to death whilst rolling in all the filthy lucre from the design products.
What sucks is that for media creation apps, Adobe still has untouchable quality. Nothing even comes close (sorry Gimp, RIP Freehand), except maaaybe Final Cut or Vegas for simple editing.
It's still in early-early-early-beta but it's the first product I looked at and thought "woah, there's something that is actually interesting in the design space".
I've seen other awesome specialist "arty" apps like this, but nothing for general use. Photoshop has incredible breadth and depth, I've been using it for 15 years and I still stumble across hidden corners.
Corel Draw is the only app I've ever seen seriously compete, and it wasn't really in the same league - I could be wrong, I never spent a long time with it. Gimp really is a toy by comparison. (Sorry Gimp.)