Hii ...
I can tell you who it is hurting. It hurts the sellers of mats. Those sellers might sell a few stacks a week to afford dimension items, or help pay for gear. I personally farmed mats for higher level alts because it was a quick way to make plat each day. I also would sell a few stacks a week of whatever mats so I could afford to buy dimension items off the AH. I can't live on Rift although there were times I practically did, heh, but my time like everyone elses is precious to me where I should not have to spend 8 times the hours farming mats to buy items for the one part of the game I enjoy. I think it would be the same for people farming to upgrade armor etc.
Thanks ..!
For More Details:
animated startup explainer