I felt really bad for everyone who attended this show.
The heart of the issue, as encapsulated in this performance, is how phish really feel about themselves at this point. Given how long they've been around, I'm certain they have a very good idea about who their fans (of all types are), what their (phish's) reputation is, and what each type of fan expects. I mean, they definitely know that first sets are song sets with one jammer or so and that second sets are more or less jammers set out in good flow (bitchin' segues encouraged) with a breather thrown in and a raging rocker to close. That's their formula. They've been perfecting it since '95.
Sure, there are exceptions. The Grand Prairie show from last year is a good example. Not a four song second set; just lots of good tunes played well. Still, last night is an even bigger departure. I mean, that second set has, like, almost NOTHING going on. Ballad after ballad. So, yeah, I would say they are trying to send a message, either to themselves or to the fans. To punish the fans who actually showed up is bad business. You wanna punish the fans who DIDN'T show up. Also, if you want to break expectation set for certain song placements, set structures, etc., that's fine. But you still have to put out an interesting product.
Nights like these expose Phish's mortal weakness: bad songwriting. If you have an off night and all your songs are jammers, it's very difficult to circle the wagons and pull off a tight, workmanlike show with a bunch of boring ballads that the crowd hates. They know this. What's even more frustrating is that there ARE those good songs in there (wedge, horse->silent, axilla, etc) and, for this night at least, they chose to shelve them. A real dumper. I'm not sure what message this sends exactly, but it's something.