While news of Tate's release doesn't come as a major surprise, it is still very notable. Before New England's trade for Chad Ochocinco, Tate was still projected by most to be the team's third wide receiver. The trade for Ochocinco pushed Tate down the depth chart, and then a mid-training camp injury continued the slide for Tate, as he was outperformed by the likes of Taylor Price, Julian Edelman, and Matthew Slater.
There's also the changed kickoff rule to consider. With kick-offs moved from the 30 to the 35, there simply wasn't a big of a need for a return specialist, which Tate was at this point. Julian Edelman is the better punt returner, and either he or Matt Slater should be able to handle kick-off duties from this point forward.
While the Patriots could cut another receiver, my belief is that they will now stay pat with the six currently on the roster: Wes Welker, Deion Branch, Chad Ochocinco, Taylor Price, Julian Edelman, and Matt Slater.