While it's a nice idea, I really don't see the appeal personally, and definitely not an adequate replacement for EMH. My family likes to sleep in on vacation, and I'm sure I'm not alone. It's an absolute chore to drag my wife and 3 kids out of bed intime for rope drop. I have to be up at 6am on a regular day to get everyone dressed, fed and out the door, I don't want to have to do that on vacation. We loved the nighttime EMH for this reason. Something really cool about watching the Magic Kingdom slowly empty out at night and just walking on as many rides as you can just before the park closes.
Now between that and no fastpasses, we're going to be even worse off by not waking up at the crack of dawn. I can deal with the loss of Magical Express, between Uber or simply renting a car for a day or two, its not a big deal. But when you're losing that, in addition to no early Fastpass booking window (not to mention no Fastpasses at all), and no extra magic hours, there's very little reason left to pay for the grossly overpriced rooms. Yes there's that whole 'Disney bubble' feel, but outside of that I'm not sure if I can justify it anymore. We usually end up taking Ubers to the parks anyway when the busses are running slow.