Source: The Wrestling Observer Newsletter (F4WOnline.com)
In regards to the creative side of the SmackDown! brand, Michael Hayes is reportedly taking some heat for the changes he made to the Royal Rumble PPV back in January just a few days before the show which is said to have changed booking for the worst long-term reports The Wrestling Observer Newsletter. It is also believed that Hayes has heat for failing to keep Freddie Prinze Jr. on the creative staff as Prinze Jr. worked under Hayes during his stint with the company. The McMahon's felt Prinze Jr. had a lot of long-term upside in helping them creatively and politically in Hollywood.
It should be noted that Vince McMahon has been vocal recently about wanting the RAW brand beefed up even more in the upcoming Draft following WrestleMania 25, meaning things on the SmackDown! side could be drastically downgraded considering the state of MyNetworkTV. While not saying so, with depth the way it is, SmackDown!'s probably going to take a big hit.
As far as SmackDown! is concerned, he wants to go back to focusing on the Hispanic audience it lost following the departure of Rey Mysterio from the brand as well as developing new stars.
One source described SmackDown! as possibly becoming a brand that develops new stars whereas the Raw brand will remain the main focus of the company on TV.