I think the drop-off in candids may have something to do with the City being off the air now. She's less interesting to paps now and she never achieved the status of Rachel Bilson or Kate Bosworth (who are high up enough to get photographed even without projects), so she won't get photographed for doing nothing. I have actually seen a picture where Olivia is walking by a bunch of paparazzi and the guys are just sitting there, not even bothering to take her picture.
And I doubt her new TV show will go anywhere. Lauren Conrad has a much bigger fanbase and even she couldn't get her show on the air. I believe LC's show had the same premise as well (launching a new fashion label). If there's no demand for LC's show, I doubt there is one for Olivia's show.
She needs to get involved in a new project soon before all interest dies off. And her newly evolved style is not garnering new fans either.