Yeah, he needs to modernize his strategy quickly. Truth is, he puts out too many mediocre beers, period, at a time when many breweries are putting out great stuff. I have a soft spot for SA and Koch (and Sierra, Anchor) for the change he helped bring in - what we take for granted now. IMO he should keep selling his BL , scrap most of the other semi regulars, and replace them with a handful of well designed, top notch beers. And if he can't sell them at the $ 8.99 price point, who cares ? Sell them for what they're worth in the market and people will buy if it's worthy.
EDIT - They've done some really good things with some of the 'small batch series' beers, but that needs to be the rule now and not the exception.