Heres the word I got wrt non-continuation during a non-select. counseling.
-No negative quality indicators didn't really matter, it was dependent this past year and next year on who is on the critical AFSC list.
-Normally that lists includes pilots, this past year it only included 11F, 11H, and a couple other random ones, the person I spoke with was suprised not to see 11S on it this time around.
-To reiterate she stated that they expect this to continue, thus we now have a de-facto up or out system, regardless of DOPMA(congressional rules)
Rumint follows: the reason they extended the TERA option was that AFPC, more specifically leadership at AFPC, said that the worst thing they did to pilot retention was the 2011 cut and a certain GO said under his watch this wouldn't happen.
If you are wondering what your chances for continuation etc. are, have your functional inquire into who is on the critical skills list. Bare in mind that individual functionals(at the Majcom) level can petition to add AFSCs to that list...I'm not sure how much it counts though.