Kodak is not going head to head with HP or Epson or any individual or even office printer manufacturer. The niche they want to develop are the specialised graphics market. We are talking big behemoths of digital processing printers some 6-10 metres long built on all sorts of technology fr advertising, graphics, typesetting, etc.
Now, the decision to drop virtually everything else - including patents for CCD image capture - can be questioned, but the truth of matters is that here are the highest profit margins.
Film is not profitable (on the scale that Kodak built their plants) any more. No matter how much we all here love the medium.