I'm a little disappointed at the people dropping, but it sounds like a lot of these are people that haven't played in a tournament before this for Armada. I know two of my usual group who are more into X-Wing wound up registering because they didn't make the top 16 the day before, and wound up dropping after Round 2. I think what we will see going forward is people focusing their time and energy on either X-Wing or Armada (Or Imperial Assault) at higher levels, and ignoring the other one(s).
I wish I had been there for this, would have been fun.