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I believe simplified subsumption is required to implement quick look impredicativity and that is the only practical reason for this change.
The error message is at the least very unhelpful. Please report it on https://github.com/haskell/error-messages/issues/new
There is an open issue on hlint for it and the situation doesn't seem encouraging for anyone using apply-refact on save for Haskell files.
I don't think there's any malicious intent. It seems pretty clear that the motivation here is to simplify the type checker considerably, which is a really good reason to do something. Heck, I've got an open issue for deleting a feature in persistent which (according to the lack of comments on the issue) only ever used by persistent's own test suite.
One body that is in a position to coordinate such funding efforts is the Haskell Foundation. Some relevant discussion is happening at https://github.com/haskellfoundation/tech-proposals/pull/27. If your work is willing to contribute funding then perhaps it would be beneficial to nudging it along if you chimed in and said so.