Removing the functionality for now is a very good thing
This might seem like a step backwards, but it will force Tesla to take its time refining the system -- and the more time it takes, the better. When the various Autopilot-related features come back online (Musk hints it could be as early as December, but with no definitive timeframe, it could just as easily be 2018), it's reasonable to expect they'll be quite a bit more refined than they are now.
This is an interesting time for Tesla, and not just because it's taking a cautious approach for the first time in the company's history. It's gambling mightily by putting all the hardware in cars now, when there's no guarantee -- or even indication -- that the government will legalize fully self-driving cars for the masses within Musk's stated 2017 timeframe. Considering the hardware costs $8,000, anyone buying it now is essentially crowdfunding its development -- a practice that definitely is straight from the Musk playbook. Overall, this might not be a perfect solution, but it certainly is progress for Elon and Tesla.