Assuming effects can wear off passively hence leads to wierd situations. The rules does not say that if an effect wears off passively he should continue applying until Step 6). Additionaly, the rules do not say that effects wear off passively. They just wear off when the card physically leaves play.
I will admit that my discussion of "wear off passively" was confusing. I was trying to tie my thinking into the wording of the FAQ, and obviously did not do a very good job.
The key difference in our reasoning is in your statement "They wear off when the card physically leaves play." I would phrase it as "They wear off when the card is removed from the moribund state." Up until CotTEC, those two statements meant exactly the same thing, but, as mcd273 points out, the design of CotTEC creates some difference between the two.
Remember, "moribund" is supposed to be a transition between "in-play" and "out-of-play." As such, CotTEC kind of "misuses" moribund by ultimately creating a transition between "in-play" and "in-play."
A (normal) moribund card isn't fully in or out of play, but is actually a little of both. Think of it this way: when you play Dissension on my Ally, is it discarded in Step 3 (when the event resolves), or is it discarded in Step 6 (when it physically leaves the table). The answer is "both," depending on what you want to know for. Said another way, you argue that the lasting effect just wears off when the card physically leaves play (Step 6). But if I have a card that says "after a lasting effect on one of your characters ends before it's set duration...", isn't the appropriate time to play that in Step 4 or 5, depending on the type of effect (even though the effect hasn't worn off yet)?
Anyway, because "moribund" is a transitional state - and the card is considered to have been killed (in the case of CotTEC) while in that state - the sole emphasis on the physical removal from play is probably inappropriate. Or at least it has become inappropriate now that we have, for the first time ever, the possibility that a card will NOT be physically removed from play at the same time it is removed from the moribund state.
So, my position is that it is more consistent now that "moribund" does not necessarily mean "about to be physically removed from the table" to say that if there is a lasting effect on a moribund card, the lasting effect terminates when the card is removed from the moribund state, wherever it's final destination happens to be.
Ultimately, I think this is more consistent with the fact that CotTEC is not a save, and the kill is considered to have actually happened.
Edited by ktom, 11 November 2013 - 05:18 PM.