The only logic I can see to this is, perhaps, "divide & conquer." If 106.1 can take away even .8 of K95's audience, that could bump KMOD up to #2 (if numbers stayed identical for the next book which of course they won't... but you get the idea).
I know Gen-X wasn't much of a threat to anybody, but who do you see benefiting from them dropping the format: Mix 96? K-Hits? The Sound? Bob-FM?
I wish them well... I'm all-for a good format fight... but I'm not holding my breath for The Twister to do any real damage. Time will certainly tell.