Yes, I've been reading about this on the various blogs.
The challenge is that the C1 lounges are extremely overcrowded. However, did they have to kill Priority Pass in terms of additional guests? Good grief!
The reality is that the VX was really intended for the casual travel--not the travel diehard. Many have posted in this forum that they struggle just to use the annual $300 travel credit.
I'll keep the card for now, as it's a break even proposition, but I rarely charge anything to it. Not sure how compelling it is for me to keep it, but am hoping that one day C1 expands their lounge network.