What is the rationale for moving collections and displays under the access (No MLIS required) versus engagement track (MLIS required)?

The rationale is pretty straightforward: In order to put the Library in the best position to achieve its strategic plan, we need to do some things differently. This includes tasking our librarians (MLIS holding) and other Engagement Services staff with -- among other duties -- programming, readers advisory, InterReach, instruction, relationship building with individuals and groups, research, community service, and civic participation. To ensure that these Engagement folks have time to do all of this effectively, we also have to remove some of the more traditional "librarian" responsibilities -- things like providing directional assistance, basic computer help, materials inventory and collection maintenance (weeding), data gathering, display maintenance, and equipment use and instruction. These activities will be the domain of the Access Services staff. Likewise, to ensure that Access Services staff have time to deal with the work assigned to them, we will need to use machines and systems designed for this purpose -- things like self-checks, automated check-in and sorting system, and automated sign-up systems. It is all about tasking the right person with the right work so that members get what they need when they need it, and at a cost that enables us to increase capacity, not limit it.
For the display part of the question, I think you're right -- librarians and other Engagement staff should do them, though not exclusively. It might help to think about the display in terms of its purpose. Many displays draw a member's attention by making materials seem more available by placing them in a different new and different place (Access). Others are connected to programming, Interreach, community involvement, etc., requiring a level of research and an awareness of relationships within the community (Engagement). These displays might also more targeted, of a shorter duration, and be mobile (taking them to Interreach events, etc.). So the question isn't about whether you can or will be doing displays, but the kind of displays you'll do, and the results you'll expect to attain in doing them.