His dream job that took too long. They should've pulled the plug on the project 1/4 through the development time. But S-E has been making bad decisions and spiraling since after FF9.
Well, not really his fault that the Final Fantasy XIII team wasted two years worth of pre-production - half of that game's dev cycle - on assets that couldn't be imported to the then in-development Crystal Tools, forcing the bulk of the Versus XIII team to go help get XIII out of the door, thus leaving Nomura with a skeleton crew comprised of department directors, scenario writers and composers for three whole years.
Neither was Nomura's fault that, once XIII was finally out in late 2009, the core of his team - which had just finished putting together the vertical slice of gameplay shown at the Fabula Nova Crystallis event in early 2011 - was again disbanded to go help rebuild Final Fantasy XIV, which just a couple of months prior had crashed and burned in it's original form. This not only meant that Versus full production was pushed back for the second time, but also that from a schedule point of view they wouldn't be able to deliver the game in time for PS3 before the arrival of the next-generation, effectively making all the assets, code work and level design made up to that point obsolete and completely unusable.
Square Enix management fucked up real bad - as they always do - and what's more infuriating is that they precisely failed to deliver on the single game that all people wanted: not XIII, not XIV, but Versus XIII. And when they brought it back and reintroduced it as XV, those assholes had the nerve to remove Nomura off his own, very personal and extremely Nomura-coded, project to give it to someone else who butchered the story, characters, world, themes, gameplay and setting.
There's a thing I agree with you on though: they should've had the balls to fucking cancel the game at that very moment and let it become eternal by living rent-free in the minds of gamers. But instead, they did the equivalent of moving forward with Silent Hills without Hideo Kojima and Guillermo Del Toro. What a fucking disgrace.