Yes and no, but don't make it a mess DATD.
I went deeper into this and hmm, yes, there were two Ion Storms.
First - Ion Storm Dallas I described, with Romero as the head found it right after leaving ID. As Daikatana as the main project, they worked on it at least three years. They also took an RTS Dominion which by that time was lying without developer.
In 1997 Romero and Holl invited the dude you described - Uorren Spector and funded him to open new branch in Austin.
Daikatana was released at 2000 and actually shared the fate of Dominion. Because of high rotation of employees final stages of the games were rushed. Couple of last levels were drawed by Romero himself. The third project - Anachronox (Tom Holl was leading it) was a success, but by that time Ion Storm was alreay half sunk. Right after release of Anachronox Eidos closed Ion Storm Dallas offices and Romero and Holl went into Midway Games.
As for Ion Storm Austin, it's history started in 2000 with release of Deus Ex.
It's sequel - Invisible War was released in 2003 and Deadly Shadows in may of the last yer. Thanks to financial difficulties such people as Harwy Smith, Dennis Fulton and, yes, Uorren Spector left this fall Austin for Midway Games Austin.
Now I feel a bit confused as are there two different companies now as Midway Games and Midway Games Austin and what is the third project of Crystal Dynamics in San Francisco (another company owned by Eidos) besides Project: Snowblind and Tomb Raider 7?
PS As for Thief Dark Project - yes it is child of Looking Glass, but it is written that Thief 2 was made solely by Eidos. <img src="/ubbthreads/images/graemlins/disagree.gif" alt="" />