As a big Tykables fan I took the opportunity to visit them last week while in Chicago at a conference (and was able to meet with and speak to Todaler at length). I don't want to betray Todalers' trust and say anything here, but I will say that from a business point of view he made a tough, bold decision to not sell bad product, not to take another stab at a bad production run and instead start from scratch in making a better diaper. If what he told me was correct it's going to be an awesome new diaper. I'm anxiously awaiting their return which I think he's confirmed as being around Labor Day weekend.
I'll also comment that in speaking with him he's more impatient and frustrated than anyone in getting the new product out, but after being burned by bad product previously it seems that he's not taking any chances in having a screw up.