But the thing is, as far as I can tell management still doesn't understand why they received the response they did. I really think they figured some of the big ones would have no choice but to sign on, thus encouraging others to do the same.
That's definitely an issue. This could be because of three things, two of which are fixable. It's hard to tell exactly which it is, because officially the 1.1 OGL is a fiction (and will remain so until revealed or the leak is acknowledge officially).
1) They're business people, not gamers. They legitimately don't understand how this would negatively impact the game for a large segment of their customers. This can be fixed by actually
asking the customer, which they have yet to do.
2) They somehow believe this is in the best interest of the D&D community. I honestly have no clue how this could be, but if it's the case, they can simply present their argument and try and sway the community.
3) They don't care. This is a business decision to increase short term gain at the cost of long term sustainability. I fear this is the case, and it's the one unfixable scenario. Given that WotC has been screwing over their bread and butter, MtG, for the last few years, it's become obvious they've forgotten a key bit of wisdom: you can shear a sheep many times, but you can only skin him once. 5E has been unbelievably profitable, and to take
any action that could jeopardize this is absolutely insane.