Tony Mamaluke was released because Vince McMahon thought he was too small (he's 5-10 and 155 pounds). ECW writer Dave Lagana fought hard for Tony Mamaluke to keep his job, but in the end, McMahon won out. Lagana came up with an idea of pushing him as an underdog character similar to Sean Waltman as the 1-2-3 Kid, but McMahon didn't go for it and he was subsequently released.
WWE had high expectations for Sylvester Terkay because he was being groomed to feud with The Undertaker in a headline program on SmackDown. But after a few weeks, WWE didn't think his MMA style in the ring was getting over and they wanted him do a pro wrestling oriented style. He was lost with the new style and was subsequently sent to ECW. Also, Gerald Brisco, who loves amateur wrestlers, wanted to make him into a Kurt Angle-style wrestler. He too gave up on him in the end and that led to Terkay being dropped. Terkay's pro wrestling career seems to be over because he is now looking to sign a multi-fight contract with one of the MMA organizations.
There was talk of bringing The Bashams back to SmackDown once Danny's torn biceps injury healed, but that obviously never came to be. Apparently, the call-up of the more colorful, yet far less skilled Deuce & Domino act led to The Bashams being expendable.
If you reference any quotes from this piece, please attribute them to the original source, and kindly credit WrestlingNewsSource.com (h/t) for the transcription.