People actually used this options? Seems like a giant waste of time to me. Just do a couple strikes, lol..
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It was a nice alternative for people that didn't want to run crucible but was still interested in faction gear. Untill this update, if you didn't want to PvP you could still get faction gear without it.
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Seems like that would be so much more difficult than just playing crucible. They need to add more vanguard specific vendors, or allow those existing to accept vanguard. That's what you should be pushing for.
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I don't see the problem with keeping something that was hurting no one and let people play the way they wanted. They didn't need to remove it, they could have just tweaked it. A 5:1 mark conversion isn't game breaking either.