Earlier quoted context omitted.
Nonsense. People stick with telnet because of ignorance. That is why you remove telnetd, and force them to update. There is no difficulty in switching, and thus no valid reason not to switch.
As an example, there are entire classes of embedded platforms that support networking but barely have enough RAM even for the IP stack. Is it really sensible to add $10 to the cost of a temperature sensor just so it has enough RAM and CPU to handle SSH?
If they take this bit out, you can still telnet out to your embedded hardware, L2 switches, and the like.