My friend is a cast member in Disneyland upper management.
Gotcha. I'd always understood that AP pass numbers -- like specific attendance -- were considered proprietary and therefore confidential.
A friend who works at Disneyland for over 25 years in middle management. Hotel guests spend more per capita than AP people. Year after Year.
It is enough to outweigh Annual Passholders who spend less. The SO CAL Select spend very little when compared to hotel guests.
If that's right, I wonder, then, why APs weren't eliminated years ago. Whatever the case, it doesn't strike me as a one-or-the-other proposition; it's not do we keep APs or do we keep hotel guests? They've coexisted for years and with able leadership and direction they can continue to. Since Disney will offer memberships (whatever those turn out to be), I suspect -- and none of us know, perhaps not even Disney yet -- the offerings will be
similar to APs. Not the same, of course. I also imagine they'll cost markedly more. For many of us, that's largely immaterial. We'll pay what they ask. I've joked to friends many times that, sure, we complain when AP prices increase. But we also continue to pay for them

. It's like complaining about paying income tax. The IRS doesn't care if you complain... as long as you pay

.
No hotel would discount any complaint.
Absolutely they would. As we all know, some people are entitled, demanding and insist on $10,000 service for a $79.99 room. Businesses discount customer complaints daily. Not blatantly, of course, but behind the scenes of course they do. If businesses gave in to every customer demand, they wouldn't be able to function. Complaints will almost always be heard. But they're not always acted upon in the way a customer would like.
Ask your friend about DL's Magic File. It's a database of problematic guests. Some of them have entries that are pages long. These people will have minor issues and then demand five free passes or something in that vein. Disney does not grant these requests.
Disneyland Hotels do well but are never as full - occupancy wise as Disney World.
I'm not surprised. Larger park(s), larger draw. As I'm sure you know, people also tend to visit DW for a week or two versus DL, which, I suspect is four days, max (in ~ 95% of the cases).
Big picture: Hotel guests generate more money - room revenue, spending on food and merchandise and on special events. Conferences at the Hotels generate a huge amount of money as do parties and weddings.
Of course they do. Few, though, will decline to have their dream wedding or party at a Disney hotel because the parks are full/busy. They've been so for years and likely will be again. Again, I don't accept that memberships (née APs ;-)) and hotel stays can't coexist while revenues are still maximized.
Incidentally, there are approximately 1,850 rooms between the DL and DGC hotels. Presuming 3 people per room, that's 5,550 guests. DL and DCA couldn't hope to profit or even operate if they relied solely on Disney hotel guests, since that number -- 5,550 -- represents about ten percent of just DLs average daily attendance. In short, hotel guests are necessary but not sufficient.
Cancelling the AP program allows Disneyland to focus on capacity attendance and making Disneyland more of a resort like management has wanted to since the late 1980s.
If they've wanted to do it since the 80s, then they can't be very competent execs if it's taken them something like 40 years to finally get it done ;-).
All kidding and divergent opinions aside, I think we're all aware that big changes are coming. People will still go, crowds will still be heavy (once peace has been restored) and people will continue to stay at the hotels. Hopefully sometime in the next few months we can resume regular visits to the place that makes all of us happy.
Side note: a lot of guidance and advice on this board has come from AP holders. Questions are answered, suggestions made, parks maps sent. When people denigrate them/us (not you,
@joseph821 but people in general over the past ~ 28 hours), it seems a touch ingracious. In my case, I know that I've helped dozens with specific requests and even the occasional birthday button mailed in advance.