As far as the EU getting axed, I honestly think folks are overreacting.
That said, there are some parts of the EU that are real stinkers and won't be missed. In another thread, a few folks have lamented that the Star Wars comics are going back to Marvel, who loathed the cheesy/corny 80's comics that company did in comparison to Dark Horse's generally more mature works (in their opinions).
And while Leland Chee has done an incredibly job over the past several years of trying to sort out inconsistencies when they do pop up (mostly as a result of more recent work either not taking into account or just ignoring prior work), I'm sure he'd appreciate having a more cohesive whole to work from, particularly given how the EU has grown by leaps and bounds since the early days of WEG's D6 system and the Han Solo Corporate Sector trilogy. It also makes things easier going forward on EU authors as there will be less worry/concern of getting various EU facts mixed up while also making it easier on the approvals department to ensure the new material lines up with the pre-existing material.
That and as John Jackson Millar quite wisely said during the 2008 GenCon WotC Star Wars seminar, "every time you create, you also restrict," referring to that every time an author introduces some new element that winds up restricting what a later author (or even the same author) can do in that setting. He used the example of Darth Malak, who appeared in the KOTOR comic series prior to becoming a Sith Lord, and mentioned he had to be careful in case some official backstory element came out that completely contradicted what he'd put into the comic.
And as Split Light said, if it means that the material written by Kevin J. Anderson gets wiped out, then so much the better. The man's a hack even at the best of times, and what's been done regarding Dune borders on a true travesty.