If you take a look at the TCG today, at least in my area, the vast majority of players are in the Masters division. If Masters were to go away, a very important part of the community would be lost. Although I wasn't around at the tournament scene at the time (but still playing the game at league), this sounds like a very devastating blow to the community. Players that are very competitive spend at least $100 (probably more like $300 or $400, if not higher) to stay in the game. When something like this happens, it feels like all the money invested into the game is for naught.
I go to tournaments not only to have a shot at winning, but primarily to have fun. The main purpose of tournaments is to have fun. Without it, it is no longer considered a game. You meet other people and share experiences in the game with each other. Of course, there is an enormous desire for players to win, because the prizes can get quite spectacular, especially at the bigger tournaments like Regionals, Nationals, and Worlds. We are talking about scholarships worth thousands of dollars at these levels.
There will always be players that are in it to win, players that are in it for fun, and players that are in it for a balance of both. There is nothing wrong with any of those choices. But to take away the opportunity to play is a game loss for all three of those types of players. It is like kicking someone on the ground that has already been beaten down in a fight. The opportunity to play disappears, and on top of that, there is negative judgment associated with it, too. It characterizes the entire 15+ age division as a group that sacrifices sportsmanship, values, and social opportunities to play to win, no matter how dishonest, disrespectful, and ego-inflated they have to be. That is not a fair label for an ENTIRE age group to receive, on top of being excluded from the game. Yes, there are people in 15+ that can take winning far too seriously, but that makes up such a very small percentage of the age group that it is not worth shutting out an entire age group for. Even most people that are in it to win are not like this. There will always be that small percentage of people that sacrifice sportsmanship and other important values to win, no matter what game we play; it is part of the nature of competition. We do the best we can to discourage it as much as possible, but it will always be there in some form.
Almost all of the people that I have played against in real life have been friendly and have upheld the spirit of the game, and even when I lose, I enjoy the close matches that require a lot of strategy. If anything, I think many players in the Masters division serve as a role model for other players to follow.
To have taken this all away was definitely a devastating blow to the game at the time. Thankfully, they overturned the idea and the game continued on with the Professor Program as a way to recognize players with a solid understanding of the game and who willingly (as opposed to being forced like before) sacrifice some opportunities to play at a tournament to help younger players learn how to play, and to help out with the tournament process so that the event is run smoothly.
The TCG has gone through some difficult times, but what is important is that people have an opportunity to socialize, get out and about, learn strategy, share experiences, and potentially even take home a medal or trophy.
