I can't say this surprises me at all. The last show we went to in November 2006, Steve seemed ... out of it. Like he wasn't into the show at all. The rest of the band didn't seem all that into it either, but Steve particularly seemed lackluster and out of it.
Apparently, the band is going to continue ... just not with Steve. There's enough talent in that band to keep it going for a long time though. Kevin, Jim and Ed are creative enough to come up with good material. And really, I think Jim's only contributed 3 songs since the inception of the band. His side project--The Creegan Brothers--is good material! He SHOULD contribute more to the band. And Kevin ... his talents are bottomless (Much like the hiphopopotomus' lyrics ...)
Anyway, Lori and I will always have awesome memories of our Ladies' shows. We've seen them 5 times: 1999, 2000, 2002, 2004 and 2006. Not a bad run! Every show was amazing ... even the last show that "sucked."
All the best to Steve and the band. I hope they will all find happiness in their new paths.