I don't see why everyone's upset. This could potentially preserve the functionality of Amiibo without removing the collect-ability of the figures.
My real concern with the whole "discontinued" business is being locked out of gameplay features because of supply issues. If Nintendo can re-release cheaper and widely available "utility" amiibo products that would put this functionality in the reach of their general consumer base, letting the people who just want to play videogames sidestep the drama that collectors are used to when chasing down "premium" amiibo products with the exact same functionality.
Maybe it's not fair to compare Amiibo to Skylanders or Disney Infinity, but based on the availability for those systems I didn't think that normal Amiibo figures would be a "premium" product that sells out entire allotments of characters in a couple of weeks (sometimes significantly less).
Like Triforce Hermit, I'd be buying primarily because some of these figures are relatively uncommon characters to get toys for and would be nice to have: Shulk, Pit, Villager, and the Fire Emblem characters. So the functionality that I want preserved isn't in-game but on-shelf. Heck, I don't even own Smash Bros yet. If I get some characters they might just stay in their boxes because they look great that way.
At this point we've heard from Nintendo that some figures are out of print, that some figures might come back, now that some figures might come back as cards instead. The messaging is just all over the place. Getting frustrated is probably an overreaction though - nothing to do but wait and see I guess.