This is pretty much the worst possible news on the 4E computer gaming front.
DDO is a failed MMORPG, that hangs on with a truly tiny population (under 50k). I could enumerate it's many flaws and serious mistakes (from horrible visual design that does no justice whatsoever to Eberron, to extremely claustrophobic environments and unfriendly-ness to solo players), but it'd be a waste of time.
For anyone who cares, this line should show you how doomed this is:
"We are starting to roll out some of the 4th Edition rule set where it makes sense, though."
So basically they're trying to convert a game that works on significantly different basic principles, piecemeal. I have no idea why Atari continues to support this, frankly, apart from as a kind of IP-squatting.
If they completely reworked the game, and re-released it, they might have a chance of doing something decent and getting people back (it sold a very large number of copies, but had subscriber retention levels that make AoC look like WoW). Instead they're just going to fiddle here and there and "slowly transition". Ugh.