While unfortunate for consumers, it cleans up the offerings. For four years, I didn't buy FSD because Autopilot was good enough to cover highway driving and I couldn't justify $99/month for the "last mile". If you strip out Autopilot and given the latest FSD, I would 100% buy the FSD subscription.
Removing the lifetime purchase option also simplified my mental model. Before, I was always stressed that if I bought a few months, loved FSD, and then bought the lifetime, I would have "wasted" those few months. Plus, every month I owned the car yet didn't buy lifetime FSD made it worth "less" to me: I'd eventually sell the car, so I'd missed out on those few months of usage.
I do wish Tesla offered a price lock: so long as you maintain your FSD subscription, your price is guaranteed for 5 years. Otherwise, it does feel scary: I spend 50k on a car for its FSD and over time, they jack the price to $200 or $500/month. Also, if they jack up FSD prices and then lower base car prices, your Tesla's value decreases effectively, which feels even worse.