That's exactly what I was thinking, Scott. Yes Pilati sells a ton of accessories. Yes his collections are generally well received (although I think the last time he garnered a really rave review was back in '08). But is there real excitement around what he does each season, on the grand scale I mean? I don't think there is, not like there once was anyway. He never really had much of an edge to him to begin with, but whether or not the collections he's doing now are good, they certainly aren't adding anything new to the fashion dialog.
It could also be something as simple as feeling that he's run his course and done all he can. It's not as though he's being let go in the middle of a contract, it's just rumored that he won't be renewed. It only seems smart to want the brand to continue to excel, to continue to improve, because once it levels out it's only a matter of time before it stagnates.
I think it sounds like a fantastic plan personally, and I really hope it turns out to be true.