I'm sad for Ranieri but I'm positively sure Leicester's board would have not wanted this course of action either and this is a last resort for them. Leicester's title win gave the club a massive springboard to transform the club and make themselves a massive brand (awful to think like that but that's the case nowadays) and relegation would wipe most of that out.
I'm sure though something is not right off the pitch between the manager and players and that's played a big part in all of this.
That's my point though. That is the reason clubs like ours have had its soul ripped out for the purpose of free advertising, for example.
But aye like you say, could be more behind the scenes than what is in the public domain.