Pros
I worked at Backbone during their final project - Dance Central 3 for the XBox 360. The studio was well run for the duration of the project. Management did a great job of tracking progress and knowing when to cut or alter features in order to keep the project on schedule and avoid crazy overtime. The team vibe was pretty good and everyone more or less got along well. We shipped on time, on budget, and to critical acclaim.
Kontras
Unfortunately there were no follow up projects signed to transition to after DC3. We cast about for a bit and prototyped various ideas, but eventually the parent company - Foundation 9 Entertainment - decided to essentially shut down the entire studio. Seems that the console market is splitting into either the $20MM+ high end AAA titles (Halo, COD, etc.) or the sub $1MM XBLA/PSN games, thereby drying up the market for smaller studios.