Someone else (I can't remember which forum member, or which thread it was in) also pointed out that Chase never wanted Wamu's credit card business anyways...what Chase really wanted was the expanded geographical market, the local presence Chase didn't have. The credit card business was just a part of the package.
Put it all together with what Karatz wrote above, and Chase's actions make perfect sense (from its perspective).
Chase's method of "thinning the herd" leaves a lot to be desired. But I'm sure good ole J.P. Morgan would be bustin' with pride right about now observing the ruthless efficiency of his organization.
Well cancelling the cards is one way to "not deal with the business" - however if that's the family you sign up to join, that's the family you get (to a point)