I actually downgraded my LeadersClub unlimited as a result of this and they were fine about refunding me the difference. For me the value was
1. staying 4 stays instead of 5 to achieve a free night
2. getting a guaranteed upgrade at the time of booking which is SO valuable in high season.

Now for me the only benefit is 1. above as the lhw's I stay in arent in the cities with free transfers. What a shame, this really does devalue this otherwise quite generous program!