There's an awful lot of misinformation involved in this post.
1) 4E is a runaway success, sales-wise. The transition was quite smooth enough, and there was no misjudgment of the market. There may have been a misjudgment of a small portion of the market, but if so, it wasn't enough to substantially harm the launch of the game.
2) Rob Heinsoo is stepping down to take a more active role in actually writing, and James Wyatt--who is taking his place--had a more direct hand in the creation of 4E than Rob did. Notice the names on the covers of the books.
This whole "I don't like 4E, so it's obviously a failure" shtick is getting old. Yes, a large number of the old fan base doesn't like it. That's been the case with every edition to date, and will always be the case with new editions.
Is 4E the perfect game ever? No. Could some of the marketing have been handled better? Yes. Was 4E somehow a mistake or a disaster just because there's been a lot of shouting about it on the internet? Not even remotely.
Actually, for the record, I like 4e and DM a 4e game regularly.
Ari, I'm not sure where the misinformation is. Maybe you meant disinformation? But I didn't intend to mislead, either. It's true that a couple of months after release, the lead of the mechanical design team stepped down. By the way, I thought Mike Mearls, not James Wyatt, took Rob's place. Last I was working with those guys, James was very much on the story side of things, so a jump to mechanical design would be a big one. But that was a while ago, so who knows.
Anyway, I'm not putting out any dis- or mis- information. Just saying what happened.
My conclusion that WOTC is not fully satisfied with the launch of 4e is, I think, clearly my own conclusion. I'm not reporting on some insider knowledge or scooping a news bit. I'm just saying, DDI was a disaster, people like Jeff feel alienated and aren't buying stuff, major publishers like Clark Peterson are calling 4E a miniatures game and saying it doesn't have the soul of D&D, and the GSL is nonexistent. I think that given those things, it's safe to say that WOTC is not fully satisfied with 4E's launch. They sure shouldn't be.
I understand that some are tired of the ""I don't like 4E, so it's obviously a failure" shtick. But that is not the case here. I like 4E, I play 4E, I DM 4E. Could it be better? Yes. But it's fun. It's launch has been a commercial success. Does that mean that WOTC read the market correctly? Nope, not at all. They botched it in significant ways. Enough to ruin the game? Nope. Enough to ruin it for some people? Yep.