OK, I'll accept that this is not going to be a popular theory, but it makes a sort of sense from the perspective of someone who has a little insight into football club management, but a reasonable grasp of business strategy.
So, you stake your ambitions on an untried manager, with a reasonable budget framework - what are your contingencies when things go wrong? You are aware that a "restart" will cost money you are not willing to gamble in terms of contract settlements and hiring a successor with their personnel requirements - In Argyle's case this could be several hundred thousand pounds that you would rather not "lose". Of course you know that sticking with that manager could lead to relegation, but what relegation gives you is an optimum "restart opportunity", less expensive players, a hardcore of die hard fans and a real opportunity to restructure the business model just in time for off field development and new revenue streams.
But what about attendances?
Well despite the doom mongers, there will still be a 2-3000 core willing to accept the lower status and enough to build upon for a conference club, lets look at our Grecian friends at the other end of the Devon Parkway - their shot of non-league realism sees them in a better position than us. The other bonus of relegation is that it once and for all manages the unrealistic expectations and gives the club an enema of realism. That is a base you can build from, and building from that base costs you much less than firefighting a fall from grace. I can see that for many, the Argyle experience will cease, but the club will still exist and any financial stabilization is easier. In this position, without an unrealistic cost base, the club is much easier to sell also.
This theory came from a discussion I had with The Hartley O'Hare yesterday. We were basically saying what John has said that there was not a lot of long term hope in the current set-up and changing it was difficult within our current financial envelope. Perhaps the long term future is best served by relegation. There, I've said it.