While you have seen a drop in direct traffic, have you seen an increase in any other type of traffic?

Your direct traffic meaning people typing your domain in to their address bar, correct?  Nothing to do with search, right?  Or do you mean traffic from Brand terms?  If it is direct traffic, did you stop any sort of non-search marketing around the same time that you didn't believe was producing any results e.g. email marketing, yellow page (or any other print) etc... if so, perhaps it was actually working and had people going directly to your website.  If you mean traffic from brand terms could you share your URL with us?

I completely agree with you, Robert.  Content for the sake of content doesn't help anyone, including the SEO working on the website.  Each page should have a focus and should stick to that focus; concise, informational and clean.  Thumbs up to you, sir.