First of all, 200 at bats is a pretty small sample set to make any statistical conclusion.
Second, sorry but 49-k's in 209-ab is not bad. It's a slightly worse than average rate. He ended the season by striking out 20.2% of the team, which was right in line with his career average, 20.1%. And that rate again is roughly about league average for striking out. In fact, for a guy who put up 26 HR last year, a 20% strikeout rate is mighty damn impressive. Most sluggers strike out much worse than the average league strikeout rate.
Third, if you look at his balls in play average, you'll see he was abnormally unlucky last year. In fact, among those who qualified for the batting title, only 8 batters had a worse BABIP.
So point to the declining average and steals and ignore the tremendous growth in power and a skill set (factoring in the walks) that actually points to pretty good plate discipline.
I'm basing my conclusions on Encarnacion on what the stats are telling me -- not the hype machine. I actually was never on the EE hype train until now. I'm impressed by what I see...not by what I hear.