I think the only reason it isn't being made, at least not by the present (or rather I should say, the former) production team is that the financial backers (or rather, speculators) had to pull out. This simply isn't a good time to take financial risks - most of the movies appearing now in theaters finished production 8 - 12 months ago, right before the worldwide financial slump began. Whether or not TFS would have been a success is hard to say, but sympathetic film treatment of former WW2 enemies have proven moderately successful during the past couple of years (Clint Eastwoods' Letters from Iwo Jima, Black Book, Valkyrie and even Downfall come to mind). But those who bankroll films do it first and foremost to make money - but every dollar they put towards a film is like gambling in a casino - you may strike it big, you may not and if you lose, you might lose big as well. Several of the backers had already lost big in the collapse of the financial markets - I don't know their ethnicity, though it hardly matters - and they didn't want to lose even more with a film that may or may not prove to be a good return on their investment. While Mr. Verhoeven was passionate about making the movie, he didn't have enough of his own money to finance it. And with other projects to keep him busy, he decided to move on and let the rights to the film lapse. That's just about all there is to it. I sincerely hope that someone else takes up the project, but I've moved on as well - I had too much emotionally invested in it myself!
Cheers,
Doug Nash