It's simply business. Sad to see a company with so much history go, but history is no substitute for a future. I'm pretty stunned how far they misjudged the DSLR though, surely they could see film was going to sink, and fast?
Unless Kodak was already in dire trouble by 1998 or 2000 I would have thought they had enough capital to take a decent and early punt on the obvious future. Digital.