That was the intial idea of the move, but as you pointed out, it's the DVR that killed the idea. Recent studies have shown that the 10pm hour is typically the hour most people who have DVR's are either watching something they recorded earlier that evening or earlier that week.
About the only shows I ever DVR are Glenn Beck or Red Eye. There's nothing good on network TV these days anyway.
It’s funny you should mention demographics because Conan is beating the pants off of both 10 PM Leno and the perv over at CBS in the demo that matters most, 18-34 year-olds.
http://www.rbr.com/tv-cable/tv-cable_ratings/19409.html
The old fuddy duddies here don’t get it and never will. O’Brien was NBC’s best shot to have a late night presence after the 40-60 year-old perv watchers are dead. Now that’s gone and NBC’s loss will be Fox’s gain.
O’Brien probably wrote the statement himself, as he’s a former Harvard Crimson editor and penned, himself, what was one of the best Harvard commencement speeches ever.
http://www.february-7.com/features/conan.htm
I Leno has even a SHRED of class he’ll resign from NBC and let Conan keep the time slot.