After 3 Men And A Baby he had a few flops like High Spirits, Cocoon: The Return and Don't Tell Her It's Me, he did a sequel to 3 Men which although made a profit wasn't as liked as the first film and then apart from one TV episode he disappeared for five years until The Big Green. Although looking at his mini bio on IMDB it says he did some stage work around his time, so it's possible he felt his talents weren't being used in the best possible way in Hollywood and so took a few years off. He also got divorced around this time, so that may have motivated him to stay out the public eye for a while so the press wouldn't report it every five minutes.
As for why did him staying away for a few years allow the rise of Hanks, I kind of doubt it because Hanks was having some success in the late 80's where as the last few movies of Guttenberg's were flops. So I'd bet Hanks was going to the top regardless of what Guttenberg did.
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