Agreed. If you remember, back around 2008/2009, they even had promotions such as, where they gave a gift card for your birthday, trading pins they were giving out to APs only and the extra 3 months for AP renewals as a "perk". All of that was great and it at least gave the sense of appreciation for the loyal guest. Now it seems like they are punishing you for being a loyal guest.
And as for the Photopass, it should be offered as an "add-on". What is the benefit of a family paying for it multiple times. The way I see it, since we're a family of 3 and I'm paying for it 3 times over, then I'm going to want individual photos plus couple photos and family photos too. My husband is from a family of 10 kids and I can't imagine how long photos would take with a group like that!
The bottom line is that this sucks! The more I have to spend up front, the less I spend in the parks. I used to spend tons in the parks and through the years, I continually spend less, partly due to the pass increases, partly due to the fact that the product you get in the parks you can pretty much get anywhere and, in many ways, the biggest reason is the quality of what is offered has diminished dramatically.
You also mentioned word of mouth. As I mentioned, my husband is from a large family and they are peppered all over the country and we also have friends all over the country too. It used to be that we always pushed for them to take a magical trip, but now, I think they would be disappointed and in many ways be angered by our recommendation. The way I see it, if they are discouraging APs from coming to the parks, then they are also discouraging the friends and families of those APs from getting excited to bring them to the parks. It's a snowball effect in a negative way for Disney.