Yeah, and also think about what else had happened. Out of nowhere he loses Frank Wells, whom he was very close to, both personally and professionally, in a freak accident. Then he gets the bypass, comes extremely close to dying; he's got to face the fact that he's not going to live forever, and that he's not a young man anymore, and has to live his life differently with a whole new diet, excercise and medication he's got to take regularly (which some people say clouded his judgement.) You can sort of see why he became paranoid and micromanaging with these circumstances--not that I'm justifying him, but you can see how it happened. Then there's executives like Litvack and others sucking up to him and playing on his paranoia, reporters trying to get him to screw up on record, writing articles speculating whether or not he can actually run the company at all. Then there's other people putting pressure on him from behind the scenes, like the Board, Ray Watson, Card Walker, the Bass brothers and....those two other people who somehow always seem to make it look like they had a hand in running the company, but despite their power are not responsible for anything that went wrong.Now you mention it, I think that the heart bypass must have something to do with Eisner's nastiness coming around. From what I've read, the vast majority of Eisner's somewhat psychopathic actions occured after 1994.
And on top of it all he loses Katzenberg. Yes, I know that it was mainly his fault, but they worked together so long (eighteen years) and had a very complex relationship. I think even if he will never admit it, it hurt him to lose Jeffrey, maybe it still does. Taken together you can see why things got screwed up after 1994--maybe he's responsible for a lot of it, but people often seem to forget that he's a human being too.