I imagine a few players are breathing deep sighs of relief over this, especially those musicians in the 61-8 vote a few years back who were in favor of looking for new artistic leadership. Schwarz's tenure has been contentious, to say the least.
Previous blog postings on the subject:
Updates: Alex Ross links to a Seattle Times article where principal bassoonist Seth Krimsky, a member of the search committee, is quoted mentioning Morlot's rapport with the orchestra. Sounds good to me. Dan Wakin's Times article quotes musicians elsewhere calling him "collaborative." And here's a web page announcing the appointment at the orchestra itself.