IMO, spinning off Lands End would be a good move. I didn't notice a change in Lands End quality when Sears bought them, but have since KMart bought Sears. LL Bean is now getting more of my business. Hopefully if they spin off Lands End, it can return to its former level of quality.
In terms of Sears, it is indeed sad. As with others, my first CC was a Sears card. I have relatives that worked most of their lives at Sears. My house is filled with Kenmore appliances. My toolbox is filled with Craftsman tools (especially the sockets and socket wrenches, adjustable wrenches, and the like - never cared for their power tools though). I used to always buy tires at Sears Auto Centers, but stopped after discovering they're now woefully under-staffed. My trailer uses DieHard GC2 6V batteries, now 5 years old and still going strong.
IMO, the Sears-KMart merger was a really bad move.