Yeah, can't question his commitment and passion but problem is he doesn't have the same players anymore he had in the past when warriors like Godin, Juanfran, D.Costa, Griezmann, Arda, Gabi, Raul Garcia, younger Koke, Saul,...fully identified with his personality and were also ready to "die" on the pitch for him. Nowadays not so much. New players have never bought into his ideas like the old core. At some point he also wanted to adapt his football and start to play more offensive but his team lost their true identity in the meantime. A lot of goals they are conceding this season they would never concede 5-6 years ago, they are just a mess defensively and not good/creative enough going forward to score a goal more than opponent rather than concede a goal less like in the past.
Don't know what Atletico plans but I think it would be the best for all sides to part ways in the summer. Atletico needs someone who will bring fresh ideas and if they're not ready to give up on Felix build a team that will better suit to his strengths. OTOH Simeone is still a very good coach who shouldn't have problems to find a new club but whoever will hire him will need to give him resources (money and time) to build the team his way if they want to succeed. He won't suddenly adapt his philosophy or at least he won't be as successful as he could be if they'll ask him to change the way he sees football.
It's the same if someone would demand from Pep to give away possesion football, start to sit back and play on fast counter attacks. He's a good enough coach to eventually also win something this way but he would never replicate his success because he would never fully believe and commit to that brand of football. And if/when a coach himself doesn't believe in his own ideas then it's impossible to "sell" those to his players.