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Good question. I think Colbert and his character are too iconic to continue the show, personally. Maybe they'll come up with a different political show to replace the Report? At least that's what I hope, I just don't see a replacement being able to fill Colbert's shoes.

As Meriadoc brought up, I think Colbert's character is key to this move. Will Colbert ditch the character, tone it down, or keep it completely on the show? Personally I see him toning it down. Colbert is smart enough to know his appeal lies in his character, but also knows the conservative character is a limited shtick that won't translate well to a more generalized late night show.