It's a devaluation for elites buying BE fares, I agree. But I'd argue that it's an enhancement for elites who are buying main cabin fares, since they no longer are competing against elites on BE fares for MCE or preffered seats or for spots on the upgrade list.

Overall I view this just as aligning BE fares with their intended purpose, which is to capture ticket sales to people who care only about price and nothing else. If you care about elite benefits you aren't the target market for the people they want to sell BE tickets to.