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BS refused Honda and Yamaha because Michelin threatened to quit if they lost them. BS has always advocated open competition believing no competition devalues the brand..the reason they'll pull out next year unless it changes.
Honda were pi55ed that in the new 800 class that they had instigated, Ducati had come out and trounced them, tyres being one of the reasons..Stoner, horsepower and Magneti electronics being the others. both the manufacturers who ran their factory machines on Michelins were frustrated that their huge investments in development of their prototype 800cc machines and their big-buck contracts with superstar riders, especially Yamaha, had been virtually nullified by a significant tyre disadvantage.