That is very plausible, and it might even be the case that once free oxygen started building up in the atmosphere (from about 2.5 bn years ago, accelerating after 1 bn ya), the environment had become chemically unsuitable.
Another consequence of free oxygen is the formation of an ozone layer, reducing the UV flux at the surface. I guess the significance of that depends on whether UV helped or hindered the process.
Perhaps not in this particular example. Without the oxygen, a bi-product of life, no ozone and no limitation of UV radiation. However other windows of opportunity may have closed. Such as seems to have happened on Mars and Venus.
Note that the oxygen in atmosphere was created by life itself. Oxygen molecules are highly reactive and without a process that continually produces them they would eventually disappear.
Another consequence of free oxygen is the formation of an ozone layer, reducing the UV flux at the surface. I guess the significance of that depends on whether UV helped or hindered the process.