As much as Michelle insists that she enjoys competing, I think that remaining at the "top of the world" level has to be draining and even she admitted that it's impossible to maintain (in her interview about being at a peak at Nats and having had to come down from that because she couldn't stay up there right through Worlds but had to wind down in order to then prepare to peak again...).
All this has GOT to get tiresome, and I think she should go with what makes her happiest, be it practicing 3/3s in isolation at Lake Arrowhead or making fans of people who enjoyed some (though not all) of her eligible programs with kicka## show routines like Fallin'. Let's face it, folks, Michelle Kwan has been in the unusual situation of being a consistent world-beater, the gold standard, the class in her field, and within that pressure cooker, she has been developing two fundamental aspects of her as figure skater, the tough-as-nails, unflappable competitor and the expressive artist. It's sort of like she's been hacking away at a diamond all these years, polishing and polishing to express exactly all the beauty she has to offer.
She has an incredible amount of pure unrestrained joy and creative inspiration to show off in all the show programs that await, once she retires, whenever that is. It's basically a win/win situation for fans, I think; though most fans are accustomed to seeing her competing and holding on to her top spot, I imagine it'll get old for her at some point.
And can you imagine her NOT winning in Turin, for a third time? She'll certainly be the talk of the games (I see the headlines now--"third time's a charm for charm-wearing Kwan?" Remember the immortal, "can Kwan kick ice?"), but the other ladies are running at a pace to have made great strides in improving their presentation to match their technical skills by then. How would it feel to have held out and battered her body to wind up with yet another medal of the wrong color? It's a risk the competitor takes, but after so many competitions, despite the special importance of the Olympics, I think it's only symbolic meaning they can still hold for Michelle, because from where I'm standing, a competition is a competition is a competition, grueling, long, unforgiving of errors and fallibility, and Worlds are technically harder than the Olympics from the mere duration standpoint!
I guess it will be worth it for her if she finds joy in the challenging process of reinventing herself technically and artistically yet again (in the company of a wonderful and caring coach who seems to have her best interests at heart and wants to see her do well and receive her due, I might add) to face off against the fearsome jumps and ever-improving artistry of the Japanese on the one hand, and against Sasha's imminent X factor, when the fire in her is blazing and the power is harnessed most effectively, which we saw in the SP round at Worlds.
I dunno; just my two cents and then some
Sarah
p.s. I don't think she had a bad Worlds, soogar, though I enjoyed your post. She had two major mistakes in her QR (a fluke, not a sign of decline, IMO) and cut the music too close for comfort in the SP, and still had 4/9 1st place ordinals over Arakawa in her SP...hardly a sign of falling out of favor with the judges when you end up with bronze at an event at which you were not at your best competitively.