Click here to read the article on Daito-ryu history
I suspect that at the root of the problems between the two were Sokaku’s demanding personality, Ueshiba’s independent attitude and spiritual orientation, and the vague financial arrangements with regard to Morihei’s obligations as a certified instructor of Daito-ryu.
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You’re right about Daito-Ryu being called Aikido nowadays. Even in the old haunts around Engaru, Kitami and Abashiri among Tokimune’s old students Daito-Ryu often gets referred to simply as Aikido. Only Takeda Hitoshi Soke refers to it strictly as Daito-Ryu or Aiki-Jiu-Jitsu. I almost had a sense that many of the modern students in the Daito-Ryu heartland felt that even they were carrying on Ueshiba’s legacy as much as the Takeda legacy – that by practicing Daito-Ryu they were trying to follow in Ueshiba’s footsteps.