Judging by the new messages appearing upon log in (don’t tresspass, don’t play while driving, etc etc), I’d guess Niantic (or their investors) are worried about people’s safety, and the potential media backlash if some kid gets killed playing the game.
So they’ve panicked into removing tracking completely for fears of it leading people into places they shouldn’t be going — Private properties, dark alleyways, etc.
I assume that’s why they didn’t wait for tracking to be “fixed” before asking you to take Pokevision down.
And you’re right, it’s killing the game.
But people will always do stupid things when they know for SURE that a super rare Pokemon is behind that fence.. So, I don’t know what the solution is. But I hope it’s better than this. :(
Edit: Actually now that I think about it , I’d noticed the distance you can “reach” Pokestops & Pokemon is further than it used to be — further than the circle around your character shows. Perhaps this is another attempt to stop people going silly places? Making that range a little bigger (and updating the circle) could be enough to allow tracking back in.