Dodgeball looked really cool and it's a pity that Google just let it languish - especially since social networking seems to be gravitating toward real-time, location based services.
Though it's a real shame to lose the dodgeball name. I've found that software projects take on a life of their own, and even if you fork or recreate it at some point with a different name you risk losing that original feel, though you also have the opportunity to create a new and unique feel for that software project too.
They (referring to both the founders) must have sold it thinking they might get access to the good tech infrastructure that other Google products and services get.
That's another important thing that would have been on their mind apart from the money (guessing they sold it for a low price).
My guess is that it wouldn't matter as long as the contract was still in effect. What if Google just hadn't announced that they were planning to relaunch Dodgeball or changed their minds...