Neither Sky Blue nor Transcendence were bad albums, but they felt pretty uninspired and like Devin was just going through the motions. Especially Sky Blue, which was seemingly created solely so that newer fans who only enjoyed his more "straightforward" albums weren't completely turned off by the weirdness of the new Ziltoid album. With that in mind, it makes total sense that he'd feel the need to disband the DTP. He wants to write what he wants to write, limitations be damned, and at that point the expectations of what a DTP album "should" sound like were just creating limitations for him. That's why Empath is so all over the place. He's letting loose after he's broken himself off of those limitations and expectations. How that reflects in the music is clearly a mixed bag from a quality standpoint, but hey, I'm happy that he made the album he wanted to make, and I think the decision to end the DTP will, in the end, be a net positive for his creative output.
So no, I don't think he's going to bring back the DTP. That said, the DTP (after the original four albums) was pretty much a rebranding of the Devin Townsend Band, was it not? So it could totally happen a third time, under a different name. And it's totally a possibility that he'll go back to writing more straightforward albums, when he feels like it. I would be shocked if he kept making albums that sound like Empath going forward. So I don't think anyone should be worried about that, even if they don't like the new album. Unlike the last couple DTP albums, there's no telling where he'll go next now, and that makes me pretty excited.