As someone who used to travel a lot by rail in the not so distant past, every station that replaced one of these boards was a downgrade. Most stations had maybe 1 or 2 of these signs with the rest of the smaller ones already LCDs, so it’s not like there weren’t already places to get the info you couldn’t show on a sign like this.
Part of the problem with the LCD signs is they show too much information. It’s not really an advantage to show the next 30 trains incoming on the big board when only the closest 2 or 3 have gates assigned. They also tend to be themed in colors that are harder to read (Amtrak does blue on white, which is harder to read than white on black). Some stations tried replacing the split flaps with single-character LCD displays to mimic, but they always ended up breaking faster (and never getting fixed) for some reason.
From what I recall in an article about these signs, industrial versions were ungodly expensive to begin with, but the real reason they’re being replaced is that the companies that originally made them are all out of business and you simply can’t get parts for them. It’s cheaper to replace an entire LCD panel than it is to fix one of the mechanical signs once and you don’t have to wait 6 weeks with a broken sign for parts to be manufactured.