I believe Eidos would benefit from the goodwill of the people that purchased their game, Daikatana, by allowing the release of this source code.
Eidos has always been supportive of the Daikatana community gamers, in many ways, from plenty of information during development all the way to allowing the release of large patches and the map pack. Therefore it would make no sense to not take this next logical step and release the source, especially considering that id Software has released the Quake 2 source already.
No parties are harmed by this. No legal expenses are necessary. Romero appears willing to do the work to package up the code, and I'm sure will remember to add in the readme file that Eidos is not responsible for tech support on the source code.
Please release it to the community gamers.
Gwog@3DActionPlanet.com, Site Administrator of GameSpy Network's PlanetDaikatana.com