Despite Mudge himself was a complete asshole and was completely amoral, he had grown up. And despite Squill and Neena picked up a lot of his attitude and thieving skills and rebellious natures, they were loved by their parents...which means Picket and Nickum must have really really screwed up, to do something bad enough to be disowned and never spoken of again.
Or, they weren't any worse than Neena and Squill, but they snuck into Clothahump's house one day, messing with his stuff. One of them fooling with a spell book chanted a forbidden spell which caused a mist to envelop the two of them. They never existed.
Neena was actually listed as "Noctor" on the back of Son of Spellsinger. It looks more like it was a case of the character's name being changed somewhere in the writing process and the memo not making it to the publisher, then Foster not checking his work for Chorus Skating.