I'm at the Gold level; I've been on 5 cruises with my family (and 1 for business), and on all the family cruises, my wife and I had dinner at Palo, with it being a highlight of our cruise. I don't like the change at all. And I say this after looking at the menu and realizing that what I would order is not much more than $45 anyway. I'd rather see them remove item options or charge more, to be honest.
For us, one of the nice things about Palo was that it was more of an "experience." You pay some fee and then you get to enjoy a nice dinner. You don't worry about what individual items cost, you don't have to worry about saying you do or don't want something or calculating whether it's worth the $ to order this item or that item. We've had waiters bring us small samples of something we didn't really want to order but were curious about. I didn't like (or usually try) 90% of the antipasto cart, but it was nice to have it as an option to try. It made for a nice overall experience.
To a degree, this is part of the attraction of the main dining room as well. The food there is not nearly as good, but it's nice to just pick what sounds best and not have to do cost calculations about that choice. In that way, the main dining room may be more attractive for us than the new Palo.
Now, I'll get to do all the mental calculations about every item I order, just like I would at any other restaurant. I've already looked at the menu and thought - "maybe I don't really want that item and would rather save the $ to get something else." While we're still likely to go - assuming the "ambiance" and service stay at a high level it's worth it for the "evening out" - it loses a good deal of it's specialness; now it'll basically be like any restaurant I eat at at home. Palo will go from a unique experience that we very much look forward to, to something not much more special than when we go eat at a nicer restaurant at home. Very disappointing.