The latter opted for a low key softly softly approach which probably didnt upset anyone senior but similarly had nowhere to take the project at the end of the day.
I had a chat with one of the Blairadam guys a while ago and he indicated that, at one point, they did go the other route with the full support of the District level people, but the higher ups not only nixxed it, they also got the whole project >< this close to being completely shut down. It only continued because they took the very low key approach and have a good relationship with the guys on the ground.
I think a number of thing might have chipped away at their resolve in the last year too. The push they were planning after the race must have been undermined by the shedload of felling, right where they were looking at building, a local apparently kicked up a fuss about someone having a race in the forest and someone has left the group.
Maybe the 'consultation' has been the final straw? I'm pretty sure it was supposed to be in spring 2010 (based on something on their site forum) but based on the OP, must have been brought forward a fair bit and minimal warning given. That must have put some noses out of joint, not just in the MTB group but the local walker group and the pretty big local equestrian community (there's as many horseboxes in the carpark as bike rack-bearing cars on a weekend).
I still think someone from the group needs to speak up though.