That's the wrong way to look at it. They served the whole 100%, and now they are starting to optimize for the 99% at the expense of the 1% of power users. (My guess would be more like 95% / 5%, but I may have a biased view myself)
That's the only explanation to the whole set of stupid decisions they've been taking lately (reader, yt UI, gmail compose, ...): they make more cash by doing so.
Personally, I have noticed a multi-year trend towards serving that 95% at the expense of the 5%.
I'm usually flamed or attacked for suggesting it in most forums, so it's very nice to see people experiencing the same thing with Google
Hangouts is the perfect example. Instead of an easily sortable, easily curatable list of contacts with an easy way to see if they're available or not... now the whole product is shiny, with flashy animations, very little user control of any part of the software, and a whole bunch of Google's "we know best" design ideas like a "special mix" of "recent*" contacts that you cannot alter in any way without actually removing a contact from Google entirely.
That's the only explanation to the whole set of stupid decisions they've been taking lately (reader, yt UI, gmail compose, ...): they make more cash by doing so.