I too am glad Moats is back on the outside--I think he has the tools and speed to play that well. Recall the screen pass in the 4th quarter to the Eagles D. jackson, because of his speed, Moats was able to snuff that out and stop him by himself for no gain. That play alone against one of the fastest people in the NFL, testifies to his athletic abilities.
However, I do understand the the idea of moving him inside. He has good size, and if you can put that speed in the middle and give him the ability to rome from sideline to sideline, all the better. But it didn't work, I suspect there was too much thinking going on and when players think, they become slow. Moreover, with the emergence of Sheppard and Chris Whilte (and the less than pro-bowl performance of Merriman), it was determined he could be better utilized back on the outside.
I think within a year our starting linebackers will include Batten, Moats, Sheppard, and White -- Barnett will probably hold his job, but these four give us a promising future over the next few years.