Adding insurance cost to handling and/or shipping charges will deter buyers from bidding on those auctions. As a Buyer, I will resent Handling charges where there were no Handling charges before the insurance change and avoid listings with Handling charges.
Ebay is trying to attract Buyers, but I think this will not be viewed by Buyers positively, either. Before, they at least had the option of choosing whether to get insurance and now they won't(the cost will already be included in their Shipping and Handling). Did eBay consider that?
As regarding the complete announcement? SIMPLIFY, SIMPLIFY, eBay, not more complicated Seller DSR's, Seller Dashboard, etc, etc. (Oh, for the early days of eBay) And by the way, on BEST MATCH, I always change that to Items Ending Earliest(or whatever it is called) to do my Searches.