Yes, Toyota is still missing that final touch for winning a race and also for becoming a championship team. They need someone with very good experience to give them "the magic touch" so the team can (finally) understand why they are slow sometimes, and fast other times. Frank Dernie is an advisor for the Toyota team, but I REALLY hope they can somehow give him a bigger role on the team. Someone like Dernie can add the final touch needed to make the Toyota team a serious F1 contender.
Also from what I have heard, the main reason Williams is looking at other engine suppliers is because of the uncertainty surrounding Toyota's budget for next year. That and KERS usage.
Finally, here is a story from autosport which basically confirms Toyota will remain in F1: http://www.autosport.com/news/report.php/id/78300
I pretty much predicted something like this would happen; that Toyota would stay in F1, only on a reduced budget. The reduced budget will actually force the team to use more ingenuity and creativity.
Also the possibility of some staff being shifted to a Le Mans sports car program makes sense. Over the past few months there have been some really strong rumors about Toyota re-entering Le Mans. Given that Toyota is releasing their Lexus supercar next year, a Le Mans entry would make a lot of sense not to mention their new president is a big petrolhead and racing enthusiast.