I agree that this is not good news for customers in any way, shape, or form.
First and foremost replacement vs repair has always been a big plus when buying an Apple device. I don't care if it's refurbished all the time (which it isn't always, sometimes they're new), getting a replacement device instead makes me feel much more well taken care of when something goes wrong. I know a great many people who would say the same. And yes, since they sell the same devices again as refurbished or are reused as replacements for someone else as refurbs, there's not as much cost lost as you may first think.
Genius Bars are already busy beyond capacity in many many many locations. Adding one more thing for them to do in repairing your device while you wait will definitely not help things in that regard. Hire more help you say? Some stores can't do that. But even if they could you're now adding more cost to the changes.
As far as changes to AppleCare, this is also very very bad. This is another thing that contributes to Apple's premium image. If I buy AppleCare and I sell my device to someone else while still under coverage, it increases my resale value as well as gives the buyer extra confidence that he's not getting a raw deal; if something is actually wrong with the device, he can take it to Apple to get a replacement (see above). This makes buying Apple products a kind of investment--you pay a premium partly because you can sell it in a year or two and make 75%+ of your money back.
Related: Many people take their first step into the Apple world with a used device, being unsure they want to make the full investment. After one or two of these, most eventually begin buying new ones. Taking away the "gateway drug" for these folks can translate into fewer new sales later. Not good either.
Lastly, as a whole, this all does smack of just a penny-pinching move by someone who doesn't understand what has made Apple what they are today. Apple has the money. Even if they could save $1 billion a year, what's that compared to the $40 billion+ they net every year? It brings down their whole image and makes them feel less premium, less white-glove, and less like the infamous Nordstrom they touted comparison to just a few short years ago.
My vote? Don't do it, Apple. You may lose me and many other customers.