Honestly, as much as i'd love to hate them, i kind of understand their decision. Baby Lasagna's vocals weren't great, the song was poorly written and relied on a gimmick factor. They had no idea how the performance would elevate it, and could never have predicted it taking off due to a viral factor.
I kind of liked it at first, but it got old to me quickly. It required the live performance for impact, hearing it on radio it felt completely flat and amateurishly made. And the arrogance and selfishness of his supporters wanting Croatia to win instead of Switzerland just because it would be to expensive for them to visit, really turned me off it further, but that has nothing to do with this anyway.
Clearly, they should play to the qualities of their last two entries, but they need to emphasize good vocals and composition a little bit more to avoid ending up like they did this year. Not that it was a bad result anyway, but probably not what they wanted.