Sheikh, he's not quite fulfilled his potential when he is let go that young, not due to an injury. ICEMAN would be a similar story, very, very promising and talented, but banged up too badly in a race to continue racing as a 3 y.o. Now here's a juvenile who's done very well in G3 and G2, but has only won £130,000 - hardly a king's ransom by the standards of most who are recently available for stud duties. There's nothing wrong with him, and size isn't always an issue with sturdy little sprinters, anyway. Don't know if Hannon urged Wood to take the offer, but you'd have thought it was worth at least keeping him on to next year, with good 3 y.o. prizes on offer.
I think it's ridiculous that an apparently perfectly fit 2 y.o. goes off to stud. I can't say anything about the owner's motives because I don't know her, but on the face of it, it's regrettable to see such a very young animal retired with so much potential yet untapped.