From the last 2 posts on their blog I suspect this is more because they are afraid Fireice will attack their network. I think they've panicked and switched back to CN to archive bigger network hashrate to prevent 51% attack... Still worst decision ever. They are ruining their coin anyways due to huge drop in exchange rate & volatility.
As you noticed... the coin was under attack. I assume it was a last call to save the project. And frankly... it worked. Of course a lot of people sold in panic. But as usual... panic and fear are bad advisors.
The future will tell if the coin manages to recover....
_Was_ under attack or your were suspecting attack based on rumors? Your claim that ASICs provide "protection" and "decentralization" are incorrect. You don't know who stands behind that hashpower. It could be same group who could easily attack the network and fake transactions. The only reason not to withdraw for them now it to wait when exchanges will unfreeze trades and then it ruined. Surely this is only one of the possible worst case scenarios. But still old-CN coins have no future now. It's only a milch cow for ASIC owners while it lasts. No sane person would invest in such coin now.