A lot of modern battery devices do have microprocessors integrated with the battery, as far as I understand it for two main reasons (i) Fully discharging the battery normally damages the battery, so the microprocessor will shut it down before this happens (ii) The internal resistance of these batteries is often so low, that they can produce a lot of current if requested. Enough to cause a fire, so the microprocessor will limit this as well to reduce the risk of an accident happening. The second point can be dealt with by simply using a fuse, but the former requires more intelligence.
The same device also often looks after the charging process, and saves on other electronics in the charger itself, which can be fairly crude if the battery looks after the charging process.
It does sound like the microprocessor has gone casters up, which is a bit of a bugger.