That was my exact thought when my agent told me that the editor who had read my novel and requested revisions - then liked the revisions - then sent it on to someone else in their group to read
was passing on the novel.
Is the novel stronger after those the revisions and will thus fare better in the next submission round? yes
Am I ultimately glad that they are passing if they aren't uber excited about the project (I mean, we do deserve and want that, right?) ? yes
When I think about it, is a free full novel critique from an editor at a major publishing house a wonderful gift? absolutely
oh, and my second thought?
this road to publication is so blasted long!