Terrible news, both in relation to the hazle you will experience during boarding (everyone trying to get even more carry on luggage on board) as well as the luxury of being able to check in 2 bags as an Elite+. I have used this perk a few times and have always enjoyed the flexibility it gave me.
Further the suggestion to allow paying pax in the lounges is indeed going to make an already overcrowded area even more crowded...
Time to start switching to another carrier.. hopefully a Star Alliance carrier will do a status match campaign soon...