Fullback is a much better position for Philippi. He's more equipped for lead blocking and creating holes than he is for reacting laterally to tackle ball carriers. I think it's a smart "coaching" move.
I saw some tweets from him last week as he was obviously dealing with the news. I think it threw him for a loop, but hopefully he will accept the challenge fully.
It seemed like defensively we had the "awesome" combination of being small and slow. I think Phillipi was part of that problem. He played hard, but just doesn't seem to be equipped physically to play on defense for this level. I do think he could be a very good lead blocker, and maybe a pass catcher as an H back role.