Here's some more information from another CNN update ( which they have a huge text note of "NEW CLUES"... not really CNN, not really ) today explaining the US reasoning behind the flight changes:
Because the northern parts of the traffic corridor include some tightly guarded airspace over India, Pakistan, and even some U.S. installations in Afghanistan, U.S. authorities believe it more likely the aircraft crashed into waters outside of the reach of radar south of India, one U.S. official told CNN. If it had flown farther north, it's likely it would have been detected by radar.
Edit: So back on the oxygen thing. I just read another theorycrafting news article which threw back to a small-plane crash in 1999. A Learjet 35 charter craft carrying golfer Payne Stewart suffered a failure of cabin oxygen / pressure and allowed the plane to fly out the duration of it's fuel and when it crashed into the ground at supersonic and high angle it obliterated itself. For a memory refresher, here's the wiki page. The premise I read in this article specifically for the Malaysian flight was basically fishing for ways this still might have been the result of an accident and not human error, but such an event wouldn't explain the forced d/c of communications and tracking nor the course changes the aircraft apparently exhibited.
XI Wiki



