It was interesting to observe quite a few airlines changing cabins over the past 10 years. Some years ago many airlines did indeed get rid of First class and improve their business class and made "BusinessFirst" type premium product. CO and AN are 2 I can remember right now. Other carriers are thinking about converting to 2 cabins (at least on some routes): SQ, QF, NZ, LH, TG.
Even other carriers have created a "premium economy" cabin these include BA, BD, GA UA
Personally (as a Business class flier) I think combining first and business class into one product is a good thing. The quaility of the business class product of an airline offering 2 cabins is much better than that or an airline offering 3 classes. It probably is also more cost effective for an airline to offer 2 classes instead of 3.
Just my 2 cents worth....