We are upset about this too. We are staying at CR this summer and my kids loved that arcade. We have not told them yet...but we have a split stay with BC, which still has a pretty good arcade, so we will just wait for that one.
I think this was a misguided decision by Disney. Taking away a space that was usable for the entire day to replace it with something that has a limited age range and operating hours just smacks of cost cutting. Considering they recently announced they would be closing all their child care centers at the end of July makes this even weirder.