Kai is awesome. I'm glad he is down sizing a bit. His key asset is that X frame of his. He has small hips and a narrow pelvis, which is PERFECT for bodybuilding.
Thing is if the muscles in your core get too big, you start to lose that asset. Sure the extra size can help out mass the competition, but it does not look as good.
With the judging criteria now insisting on better aesthetics, then cutting down a little bit to keep his tiny waist is a must, and it looks like he is doing this well.
IMHO he should be Mr.Olympia right now. He looked better conditioned than Phil did IMHO, deeper cuts etc... I think it is politics keep in Kai down due to his past activities and non conventional/excentric behavior.