As far as I know he was sick of touring. There were also stories that he wanted to cut down on his drinking and touring did not help with that. I think he's still running his label, Army Of Bad Luck. Interestingly, Colin Mee, another former DH member, releases music on that label under the name Hollow Stars. The label is still active as far as I'm aware.
I miss him. He was a fucking excellent bass player. The speed and precision of those octave notes on 'Disappearing Ink', the fact that he wrote 'Nothing Ever Happened', the general excellence of his bass playing. I'm happy with the music they've made since but I always think about what they could have made if he stayed.