Not sure what you don't understand about the move, though. Simply put, the thing just isn't selling. Maybe it's the terrible marketing, maybe it's the choice of verbs to describe the functionality ("squirting"... really?), maybe it's fact that PlaysForSure couldn't play on it, maybe it's because the software delivered a sub-par performance (at least in the minds of consumers) versus iTunes.
Or maybe it's all of that, combined.