Great move by Wyndham. Any decent Knights Inns that want to stay in the Wyndham network can surely convert to one of the other garbage hole brands like Travelodge once their contract ends with Red Lion.
Next they should dump off Travelodge, and do a major purge on Days Inn and Ramada garbage hole brands. Super 8 brand needs a pretty significant remodel/capital program but given how many of those were actually purpose built it may not be so difficult to make that happen. Knights Inn was clearly where they were dumping garbage that could not even meet the awful standards of brands like Travelodge, Days Inn, or Ramada.
La Quinta is a very good addition for Wyndham as well. Yes, La Quinta isn't perfect by any means but they are at least at the level of a Comfort Inn and just a little below a Holiday Inn Express or Hampton in my experience.