Bonneville actually had agreed to give up the CBS affiliate. This was on the heels of KIRO refusing to air several prime programs due to Bonneville finding the subject matter; 'against Mormon Church values'. As I recall, it started with the show Picket Fences". KIRO technically violated their contract with CBS and both agreed to go their separate ways. KSTW picked up CBS and went full-on local affiliate news, but it seems few viewers made the transition. In fact David Letterman pitched a fit with CBS brass because over two sweeps his show in Seattle went from #1 in the late night slot, to less than .1 share.
'News Out Of The Box' was a precursor to what we now call: Walk and Talk's. The problem was at the time, the news director and management at KIRO didn't allow for much rehearsal and talent coaching. That, and they really didn't have the moves nailed down enough to rehearse. 'Out Of The Box' was too conceptual alone for seasoned anchors who'd been sitting behind an anchor desk for their entire anchor careers to pick up. KIRO management needed to keep their tried and tested familiarity of the exiting anchors, while literally turning their world upside down in two weeks. One could argue too, that KIRO should have soft-launched NOOTB, limiting it to just one block in one newscast, with no advanced promotion about it. That way, as happened, they could work out the bugs and limit the amount of collective egg on their faces because of missing expectations.
The ability to do Walk and Talk are now expected with anchors coming up through the ranks from street reporters to the studio. I've seen many seasoned long-desk-seated anchors who just can't seem to make the transition to moving around the studio.