I'm no expert on the Huntsville market, but in my personal opinion this is indicative of the issues that a lot of home-owned stations have. The folks in the building get bored with the music, they think the rotation is too tight and not fun, they see a slight dip in the ratings (even though they're still #3 in the market), and they think that's all the evidence they need to make a change and get things unsettled. Sometimes it works. Often, it doesn't.
Station management explained to AL.com that they thought the name "Lite" came with connotations of being "music their mother or grandmother would listen to." Maybe so, but there are plenty of markets where stations named "Lite" are #1 across the board, New York being the biggest example that comes to mind. So, to remedy the perceived issue, they detonated the station's name and imaging and expanded the playlist...into the '70s? Keep in mind that people who were teenagers in the 1970s are now approaching 60 years old or older. Playing older music to attract younger listeners...I dunno.
Granted, their new imaging may be saving them a lot of money. Continuously-updated jingle packages from ReelWorld, like the one they were using, cost thousands of dollars per year. The new Mix package doesn't sound as polished, but it's probably much cheaper. However, you also have to factor in the cost of losing name recognition with every single listener you had. The cost of rebuilding that brand familiarity has to be considered. This is especially true after they spent the past few years paying listeners who memorized the Lite name and slogan. Needless to say, they've got an uphill battle ahead.
Speaking of familiarity, this is the little secret to the success of iHeartMedia/Cumulus/CBS that home-owned stations don't like to accept. The big-box stations thrive off of familiarity. Call it bland if you want to; they just call it another win in the ratings and another check they can deposit. They research their programming decisions into the ground because listeners thrive off familiarity, too. So your jocks are bored with playing Sarah McLachlan ballads every day? That's probably because their job is to listen to the same radio station for 40 hours a week. It doesn't mean your listeners want change. To do something like this, you've gotta focus-group the daylights out of it before you pull the trigger. Maybe they did, who knows.