Models are used now more than ever.
There are more models used in a single prequels film than in all three original movies combined. Literally hundreds, some of them spanning many, many yards, such as the massive Geonosis arena model.
So, this still all is fine, ILM will just be outsourcing all model work to the new company--but if you can do it in-house, then why not?? Wouldn't this be easier, faster and much, much cheaper? I really don't get this.
Perhaps now that the prequels are finished they are finding that most films don't have any, or have very little, model work? This is the only conclusion i can draw, which is actually quite true, but still. Dumb IMO.