Well, again, WOLF isn't owned by a publicly-traded company. Sure, they'd be in trouble if the ratings kept coming in as hashmarks, but they're not in as much trouble as a megacorp-owned station would be, just for losing one or two shares.
Second, if Emmis was smart, they would have stopped the mess before it became a mess. Even if they would have had to breach the contract with Alan Burns, it probably would have been much less damaging to their bottom line.
Third, just because one format is a failure in elsewhere doesn't mean it's going to fail here. Kinda the opposite of the usual saying, "just because the consultant says it works elsewhere doesn't mean it will work here."
That being said, I don't think WOLF is perfect. They're usually a good "hybrid" between CHR and AC, but they also manage to come up with a bomb once in awhile. You can get away with playing a mix of CHR currents/recurrents and top songs all the way back to the 70s, but it has to be done very delicately. Relying on a turnkey format and just letting Selector auto-schedule everything doesn't quite do it. It might get you most of the way there, but a good deal of hand-holding is required by a music director who knows what they are doing.
On WOLF's side, again, is the fact they're a small, private company. Flat ratings in the middle of the pack might not be as exciting and lucrative as being #1, but as long as the company is still turning out at least a modest profit, everyone's happy. Private owners aren't always concerned about profits increasing every single quarter... they're just happy that there IS a profit every quarter. Hell, look at WMCR in Oneida. Again, small operation, private owners. As long as they make money, they'll just keep on doin' what they've been doin'. No shareholders to answer to.
On a side note, I'd be interested to see the contract between Alan Burns and his Movin' affiliates. Obviously he hooked these stations with a pretty good presentation which at least implied the stations would be successful. But what about stations, like LA, where the format has tanked? I'm guessing he doesn't offer any kind of "money back guarantee" for that. Or maybe there are so many restrictions, where doing even just ONE thing differently from the way he specifies, violates the guarantee. Kinda stinks that the stations that are failing lose out, while he laughs his way to the bank. Then again, if he tries to do this again with another format, you can be pretty sure nobody will buy it.