At the end of season press conference when Woody said "we are keeping Rex regardless of the season record next year" it made me believe that he is treating Rex like a Rookie head coach building a new team under the guidance and direction of a competent GM John Idzik.
But why is this? Rex is a big part part of the offense falling because he stubbornly stuck to the Ground and Pound Philosophy to the point where he hired the only OC that would stick to this out-of-date philosophy: Tony Sparano. My thinking is that Woody believes that Rex is a good coach if he has talent, he can lead a great team exactly where they should go: The Superbowl. However, he has no idea how to build a well rounded team, and his poor influence on Mike Tannenbaum is partially what caused the complete lack of talent on our roster this year.
So this is what Woody is doing: Rex get a clean slate, with the exception that this is not HIS team anymore. This team is now Idzik's team and Rex will only do what he should've been doing all along Coach, and in the case of the offense let Morhinweg do what he wants to do, somebody who knows what he's doing.