I think it's more complex of a problem then Jay Leno being an assclown. I agree he should have retired or, at the very least done a weekly show. But he's now looking out for his camp, the producers, camera men, writers... every one involved in the making of his show who he's been with for 17 years will be out of the job if the show is just canceled. Either way, Conan or Leno, good people will be out of work.
I don't think that justifys what they're doing to Conan, however. It was the Jay Leno experiment that failed, not Conan O'Brien. Leave late night alone and deal with your primetime problems, NBC.
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