It had hit a brick wall. They had done just about everything with the current cast. So no, I don't think it was wrong. Either way it was going to be mostly a whole new cast.
They could have gave Enterprise a few more seasons on TV. I'm amazed both Voyager and Enterprise never got much in the big screen.
Star Trek no longer has the buzz it use to for me. Personally I think it's down to better drama on channels like Fox and. For Sci-fi fans in the UK the new Doctor Who filled the void for the UK market.