Whatever Fry's masterplan was, it backfired badly. My guess is that it included Brawn as well as Alonso, but Honda got cold feet when the latter didn't materialize and used the economic slump to pull the plug, finally realizing they had been taken for a looong ride. Paying off Williams to have Button's contract, imagine that?
In all honesty, I am not so certain Honda really wants to see the team survive to embarrass themselves even more, when it might still be looked upon as a Honda outfit.