AH, THE BIT OF INVESTIGATIVE JOURNALISM I'VE BEEN WAITING FOR: Somebody in Rolling Stone decided to explore Larry Wachowski's journey into weirdness (via Heidi MacDonald), which is the best explanation we're ever going to get for why the Matrix franchise turned to poo. It's not the greatest article ever--I would consider some of the sources unreliable, and the writer, Peter Wilkinson, throws this in near the end:

No matter what happens with Vendetta, Larry Wachowski has again demonstrated his willingness to take risks, to make movies as dangerous and transgressive as his life. V, the film's hero, isn't a crusading law enforcer. He's a terrorist. He blows up subways and buildings. Ever the working-class heroes, the Wachowskis are still challenging the system.

--suggesting he has no idea about the source material (and I think Alan Moore disavowed the film.) And there's hardly anything about Andy Wachowski, so I assume he did not do anything like what his brother did: left his wife for a dominatrix and gradually reinvented himself as a man in female garb. But the suddenly megarich Larry's sudden ability to blow tons of cash on expensive BDSM sessions seems to be what gradually robbed him of his artistic instincts, and why the Matrix lost so much of its power from sequel to sequel. It suggests Larry was sort of the driving force of the duo too, but I have no idea if that's true.