I think they stated they wanted to just plain don't have the time nor engineers at the current pace..of turnover/production of btc products and design etc ....of course with LTC at $40 usd now that could change in a hurry!
It could, I laboured this point with Sam as we struck up communications in the beggining, I wanted to see Mars as a Litecoin miner and wouldn't take no for an answer, there was even a poll on the homepage about it. I'm still determined to get this project off the ground, as I think KnC developing for it would also strengthen the interest and further recognition w.r.t. the currency via bespoke hardware from a reputable brand taking LTC seriously.
Currently it is a question of resources, they want to absolutely nail down their interest and product dev w.r.t. Bitcoin.
Believe me I confronted Marcus about LTC again this morning and he is interested for sure, but if they create something for scrypt, or multi-alts, they have to have the man power to spare as they will not panda around half-heartedly. That means a separate team that has to be able to develop autonomously with minimal disruption to the Bitcoin project(s). A lot of companies make mistakes in biting off more than they can chew and developing multiple product lines. Personally I believe BFL did exactly that and should have just concentrated on developing the 'Single' range. It's also why Payonix is such an overt scam.
All the time, i'm playing a broken record...
My suggestion, email and let them know the demand is there.