Yeah, it was probably just a causality of Pixel's son being born and limiting even more of the already tight production schedule. And who knows, maybe that would of given us a resolution to our favorite 2nd in command...
So, as you're all probably aware, Blood Stained Sanctuary was a last minute rewrite added by Studio Pixel after friends/play testers were unhappy with the original ending Pixel had gone for. After digging threw some the 2004 BBS log, and some help by majikman and a translation by MechanoPixel...
For a second I thought "Wait Dabaski is back?!" on seeing this, but no, we just have BLink being a stupid bitch instead of reporting the person.
I am disgusted.
On the Japanese Cave Story DSi Website, each character had drawn out names, and some had little drawings next to them. For Balrog'g name, it was a bar of soap.
So I feel it's safe to assume that he is, in some way, related to a bar of soap.