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I guess his priories change after winning the Championship. He is probably sick and tired of the media asking him every race about Hamilton's relationship, and fighting internally and externally of the Merc camp. Probably to him is to enjoy more time with his family and daughter, where most of the year he's away from home and family, and doing simulation and testing etc.
His decision also saved his and Hamilton's friendship, or what was left of it. After three years of battle and serious damage to the 20+ years friendship.
And saved Mercedes management, so that they don't have to make a decision if they want to penalize or fire Hamilton, after the Abu Dhabi incident.
The empty seat, Mercedes might have to settle with Pascal Wehrlein for one season. And snatch another top driver (Alonso, JB return in 2018?, Verstappan, Riccarido, Vettel if Ferrari fails him again in 2017) in 2018 season.
Power Unit dominance should be Mercedes in 2017, however aero and tyre changes might bring other teams very close to Mercedes. There's still a big unknown how the regulation will change the gap time and grid order. 2017 could be an observation season and 2018 will see lots of seat swapping. As we get a more clearer picture of which team gets the better car, and several drivers have their contracts ends in 2017.
Although contracts can be negotiated and mutually ends.
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