Although it is disappointing to see FOTL scaled back, but it's a lot better than no FOTL at all. I recall when the Poritifno first opened, onsite hotel guests got FOTL for the first hour of the park opening only. There's virtually no lines during the first hour of operation anyway, so it didn't make much difference. And also remember, if you stay at Disney, you really don't get much benefits at all. You do get early entry, but have you ever been to a park during early entry? It's pretty much mayhem.
Besides, the hotels are good hotels in their own right. To get the same quality hotel as, say, the Portifino at Disney, you'd probably have to stay at the Grand Floridian or the Contemporary. They cost around $250-$300/night, even with an AP discount. If you want to stay at the Polynesian rather than RPR, you'll be paying around $200-$250/night, even with discounts. Comparable hotels to the Universal onsite hotels around Orlando like the Peabody or the Renissance costs about the same, but you hardly see any other benefits, other than perhaps the Peabody ducks.
Lastly, I booked the Holiday Inn in Eatontown, NJ and it cost me $114/night! When I booked it, I thought, "Man, I could get the RPR or HRH for that price!" I don't get any other benefits at the Holiday Inn other than perhaps a contiental breakfast.
So beyond FOTL, I think the onsite hotels are worth staying at. Certainly people may not want to pay $$$ if the benefits are deceased, but they are still excellent resorts nonetheless.