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It is big news, but I can't say it is a big surprise. Honda's development of their competition team and car has failed to meet any of the time table goals from teh day they started. This is not something that Honda is used to as they usually step into a form of motor racing and start winning with in a few years and start grabbing championships in 5 years or less.
I know there were rumblings through the middle of the season that Honda was pretty much tired of trying to play catch up with both the cars and the moving target rules that the FIA has made into a game over the last few years.
It has been a burr in Honda's collective saddle from day one. Shortly after Honda unveiled their car, the FIA announced that there would be a new engine formula for the following season, Honda got their chassis working, all of a sudden there is a ruling that mass dampers are illegal, Honda gets into a tire testing program this year, FIA says they are changing tires next year.
F1 has become a very overpriced series. Honda is the first of the "giants" to fall, but they will not be the last. There is also a rumor of ING not renewing their $500mill + incentives sponsorships.
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