Re: So they think that the market
I agree that it seems unlikely, in the time that everyone's moving to Red and other digital imagers and shooting stereo at 60fps. I do think that ditching the consumer film industry is a mistake, in that they have a small but loyal base and, like Ilford, someone continuing to make Kodak film stock will always have a market, especially in the formats not supplanted by digital. But since Kodak have been mis-judging the film market since APS and Disc Film, I'm not sure that they have a concept of sticking to what works (even if, admittedly, the market has shrunk a lot).
In as much as anyone's printing anything at all these days (the vast majority of images stay in digital form), a lot of people are either using commercial print services or local shops - because they're plenty good enough and more convenient. Of those who print a lot at home, as far as I know the big names in photo ink jets are Epson, HP and Canon, with companies like Lexmark and Kyocera sniffing around. I'm vaguely aware that Kodak make printers, but I've never been under the impression that the had a significant market segment. If nobody's buying your printers, you can't make money on the ink; if you make budget printers rather than the market leader, it's more likely that your customers will buy cheap off-brand ink.
Kodak have never been a leader in (consumer) digital imaging - they're just not an electronics company, and they're not going to compete with Canon, Panasonic and Sony. They don't have the optical and ergonomic background of Nikon or Pentax that allowed those companies to get a foot-hold in the digital market - Kodak haven't been a halo brand name for cameras in a very long time.
They're a film company. They've been a film company for a very long time. That the market for film has drastically shrunk is unfortunate for them, but trying to reinvent themselves into other sectors where they've not been successful isn't going to make them great. From a customer's perspective, I'd like them to continue doing the things that only Kodak do (making some proprietary emulsions), cut their costs, and try to find some new area in which to invest. Throwing out their only unique products while attempting to become a profitable box shifter for consumer goods doesn't seem like a viable long-term strategy.
My only hope is that someone like Fujifilm decide to pick up the film plant and keep making the emulsions, but given that they, too, are discontinuing some films, I don't have much hope. Maybe the Impossible Project will pick it up.