Saga wasn't making money streaming its smaller market stations. So, it pulled the plug unless it could secure sponsorships for the streaming. Securing sponsorships and getting ads for your streams is a lot easier in larger markets. With a few exceptions (like WCNR in Charlottesville), there were no takers for the smaller market stations.
Saga decided there was no advantage to pouring money into something for no return, even if the competition was doing it. While I don't like the decision myself, Saga's decision on streaming isn't really any different than any other marketing decision. You always segment the market, and Saga decided going after that segment was too costly.