I have no insider information other than what Phil posted to his blog, but I do have a copy of the Wizards of the Coast 2011 Spring Catalog on my desk at the moment, and it contains (among a LOT of other eyebrow-raising game-related things) some information that may provide some clues as to what's going down with their books department.
The catalog covers exactly FOUR months (January - April), and includes only THREE novels, all of them omnibus collections of older novels.
JANUARY
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The Stonetellers, a Dragonlance Omnibus by Jean Rabe
• Collects Rebellion, Death March, and Goblin Nations.
FEBRUARY
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The Empyrean Odyssey, by Thomas M. Reid
• Collects The Gossamer Plain, The Fractured Sky, and The Crystal Mountain.
APRIL
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The Lady Penitent, by Lisa Smedman
• Collects Sacrifice of the Widow, Storm of the Dead, and Ascendency of the Last.
And that's all she wrote.
Interestingly, all three of these books look like they have been significantly rebranded. They feature the DUNGEONS & DRAGONS logo in great big type and the words Dragonlance or Forgotten Realms (no logos, just words) in about 14 point type.
Margaret Weis was barking up a storm on her Facebook the other day, because this is also apparently the way the new Dragonlance Chronicles ombibus is packaged.
I'm not sure what you can read from that, but the Wizards of the Coast novels operation certainly appears to be in what can be called a "transition period."
--Erik
PS: By contrast, a similar 4-month period in the Summer of 2008 listed SEVEN stand-alone novels (some of which were canceled) and two hardcover fiction "coffee table" style books. The Winter 2008 catalog also featured seven novels (some old, some new). I have a bunch of older catalogs, but I don't have the time to dig them out at the moment.