Hard to say. Maybe a bit of both.
What was apparent is that the Jays wanted Duquette and Duquette wanted the Jays, but the O's were just asking for too much.
What seems clear to me is that Beeston will be gone after this season, one way or another. Duquette will stay in Baltimore, which will obviously be awkward, since it's clear that he wanted to leave. (Kind of like the John Farrell situation) T.O. will continue to search for PB's replacement, although I suppose it's not out of the realm of possibility that the situation with the Orioles becomes untenable enough that negotiations with the Jays are reopened.