Arbutus: Diseased Arbutus unedo cv ‘Compacta’

My arbutus is dying. I noticed at the end of winter that there were a number of brown leaves on it, now I notice that the shrub rose nearby also is dying back on two stalks. The arbutus has some new healthy growth coming up from the trunk about 3' up. All the growth above that seems brown with maybe some green tips. Should I cut it down and toss it? Along with the effected rose stems?

 

I have cut the tree down to about 2'. I cut off every branch that had brown leaves closer to the stem than the green leaves. The only growth on the trunk now are new leaves. If they turn brown I will cut it to the ground. I have also cut down and disposed of the dead rose stalks, I don't know if they were related, maybe too much shade? I'm not sure.

 

I don't know what is happening there, but what you did seems sound to me. Hopefully it recovers, but I would also remove it if it comes back looking ill.