I saw this thread before, read the original post and apathetically thought "oh well, I guess it's kinda sad." However, once reading the posts here and some on the links provided, I too am saddened over this loss. I had a few pictures with the sword over the years, walked by a show or two, but never got into it. I can see how it's appreciated though.
I guess that's one of the great things about the Disney parks... there's so much entertainment for various groups to enjoy (and love) some things, while others are attracted to different shows and rides. It also allows for people to see "new" things in the parks that they had never paid much attention to before. I just hope the shows that Disney puts out don't consolidate entertainment experiences. By eliminating the smaller shows such as this, they run the risk of flattening the entertainment schedule and losing some of the more humble magical memories that guests (such as earlier posters) have enjoyed for years.
Oh yeah... I also think it's great that there were MK managers around. They have dedicated many years to the parks and it is fitting to let them experience the last shows of Merlin.
Here's to hoping and trusting Disney knows what it's doing...
-Scar