I think the problem, FVC, is that you speak as someone who really loves the Bretonnian background . . . and GW never did.
Pretty much; and I complained about Bretonnian background as well. At times it does seem obvious that GW has more passion for some factions than others. That's only natural - their designers are human, and humans have biases - but it does make you wish for a slightly larger GW design team, capable not only of more playtesting and better balance, but of finding people with a passion for every faction.
why do people think that Bretonnian is getting squatted? .........there is nothing to suggest that 
My suspicion is that every race is getting 'Squatted' to an extent, as they are all reformed into these ninth edition armies we hear about. If these are really these six new combination armies, then it's a question of which factions are most influential in those new armies. If Bretonnia becomes part of a new 'human' or even 'forces of order' army, along with the Empire and the dwarfs, I suspect that Bretonnia will be a junior partner by far. It may even be just a few components on the knight sprue, while the army book describes Bretonnia in the same way the current Empire book describes, say, Averland. Realistically, I think that may be the best we can hope for.
I suppose I feel confirmed in that suspicion by the note that most of what makes Bretonnia unique seems to have been pillaged in the End Times plot. The land of Bretonnia, the Lady of the Lake, all three of our special characters have been removed, two killed and one radically transformed, and so on.
It comes down to that point about GW seeming to like some factions more than others. The elves, for example, have done really well out of the End Times: clearly someone really likes Malekith and Ulthuan and so on. (If only he liked them in a way that made me appreciate them as well. I used to really like the High Elves myself, but the End Times seem designed to make me loathe the elves.) Or it seems likely that someone is a fan of the Vampire Counts. And so on. Bretonnia seems to be on the low end of the scale when it comes to GW's appreciation, though.
As Ranorian says, it makes me really wish we had the sales figures. How were these armies selling? But even then we need to consider other factors: of course Bretonnia will have lower sales if its army book and all its models are over a decade old! So maybe GW didn't see potential for investment in Bretonnia to build it up. Maybe they had evidence that the market was shrinking and they didn't think they could support that many armies; rather than try to build up Bretonnia, they could get more sales by just releasing add-ons for the other armies. I'm sure GW know that getting people to start a new army is much harder than getting them to buy an add-on or new unit for their current army. Financially, I suspect that add-ons and supplements make more sense than army updates. (See also: Space Marines.)
The six army model makes a lot of sense in this light, doesn't it? Instead of selling entire armies, GW focuses much more on supplements, and since there are only six armies, each new model they produce can be sold to a much larger section of the fan base. If we only have six armies and they're equally popular, 16.6% of the base might buy the cool new premium model. But if you have fourteen armies, as they do now, the only 7.1% of the base might buy that model. (Of course, bearing in mind that not all armies are equally popular and some units can be shared between armies, such as daemons, the real figures will be a bit different.) Even factoring in that some people have multiple armies, the point remains: fewer base armies and regular add-ons make more financial sense than supporting a large number of armies.
They are gone. Finished and good riddance. Empire was 200% more interesting than they ever were and I am still angry at all the Love Brets got back in 5th edition.
You're still angry at the Bretonnian army in the 90s? Back when they actually moved in triangles and the Lady's Blessing stopped people firing artillery at our wonderful knights? That's a pretty long time to hold a grudge. Are you part dwarf?
What I don't see is how sharing a deity invalidates your faction at all. I said it above and it wasn't answered. All you said is that you didn't like it.
Er, I talked about the stories more widely, didn't I? The Lileath thing is part of it. That idea assimilates the Lady into the elven pantheon and prevents us talking about the Lady as a unique and Bretonnian deity. I find it particularly bizarre because I cannot see any aesthetic or thematic similarity between Lileath and the Lady, as I believe I mentioned in the linked topic. I could see a case for the Lady/Isha/Rhya/earth-goddess and so on, but Lileath is archetypally a maiden prophetess. Those images are not associated with the Lady, though.
