Partially true. The Great Movie Ride has never been the symbol of Disney-MGM/Disney's Hollywood Studios--it was the Earful Tower. However, the Tower was not visible in 80-90% of the park's guest areas, thus, many guests considered GMR to the park's centerpiece and icon. When ownership of the Chinese Theater changed hands, the new owners felt that the GMR's status as a pseudo-icon warrented much higher licensing fees than Disney was willing to pay. Thus, the Hat--a definitive, visible park icon (that just happened to be directly in front of the GMR :drevil: ) was born.
Regarding Hat vs. No Hat, I don't necessarily hate the Hat in the same way that I loathed the Epcot wand. Given the choice between Hat and No Hat, there's no question: No Hat. However, I guess I can live with it.