Well they can say whatever they wish to say... bottom line is we can see some good results happening with him diverting to a different more creative path... no doubt it is still to reach out to another section/group of people in todays' world... in fact I find him quite inspiring and I am looking forward to the release of his film.... how creative.... I like new unconventional methods use to bridge Dharma and the outside world... check it out http://www.beingyourtruenature.org/
By being a film director, Lama Osel can benefit far more people than if he was a Lama. Of course, when the students act in such a way, the path of him manifesting as a Lama closes, but the path of him manifesting as something else that would still benefit others have opened at the same time. At least as a lay film director, he is not restricted by monastic rules and he can 'sell' himself by doing things that will hit a lot of people (such as a movie) and plant in Dharma imprints in them. Lama Osel, although he has given interviews that say that he is not religious (probably to appeal to more people) but elsewhere, he is still deeply spiritual and deeply connected with Lama Zopa.
Somehow, I do not think such highly attained beings, or enlightened even, can do anything else but benefit others. The way in which they can manifest is in a way reliant on the students karma. That much one can ascertain. However to call it "de-incarnation" I think is inappropriate.
Take the example of HH Trijang Chocktrul Rinpoche... He is now starting to turn the Wheel of Dharma after a hiatus... check out these article if you have not already:
http://www.dorjeshugden.com/forum/index.php?topic=2775.0With this onset I think it is just a matter of time before Lama Osel once again uses skillful means to impart the Dharma and start to turn the Wheel of Dharma the "conventional" way.
I reckon these masters know precisely when and where to turn the Wheel of Dharma and it is mere mortals like us that sit by and be dumbfounded by the chess game like precision of the steps they take. It truly is amazing!