Oh dear. That's a rather depressing story. I can see that there's a sort of professional courtesy involved, given the respect accorded to first publication in the academic world, but I think that courtesy carries with it a duty to actually get on and publish, even if that publication isn't perfect. At least with the hints that Ruddock provided, it's possible for others to follow in her footsteps, and find the original documents again.
UPDATE
Also, I'm reminded somewhat of Tolkien, and his long struggle with the material that eventually became the
Silmarillion - worked and reworked during his lifetime, but never quite brought to publication. But at least Tolkien wanted it published, even after his death, and had ensured that someone was in place to make it happen. Similarly in his academic work: the book
Finn and Hengest came out of material that Tolkien first presented in lectures in the 1930s, but was happy to hand over to Alan Bliss when he (not aware of Tolkien's lectures) started research along the same lines in the 1960s. Bliss's preface gives a good example of the professional courtesy I was thinking of:
Nearly twenty years ago, I read to the Dublin Mediaeval Society a paper entitled "Hengest and the Jutes". Later, in conversation with colleagues, I discovered that nearly all my conclusions had been anticipated many years previously in lectures by the late Professor J. R. R. Tolkien, which I had not heard; it was therefore impossible for me to publish my paper. On my next visit to Tolkien, in 1966, I explained the situation to him; a few days later, he wrote to me offering, with characteristic generosity, to hand over to me all his material on the story of Finn and Hengest, to make what use of it I wished.