The big thing I heard this morning on the radio was that, while Conan's contract was indeed for The Tonight Show, is contract did not include anything about a specific timeslot for the show to air.The ONLY way this even remotely becomes Conan's fault is if he had some sort of ratings clause in his contract and wasn't meeting it, and decided to make a fuss about being replaced.
There is a such thing as breaking the spirit of an agreement while adhering to the letter of an agreement.
You can call it The Tonight Show if you want, but if you move it to 12:05 -- when it's no longer "tonight" -- then you're ruining the brand, and you're forcing the host to share the spotlight with the guy who's on at 11:35. And that's just not done.