Sadly, like so many decisions made in isolation by MS, this also means a few of our systems that were running Windows and tied into the MS ecosystem only because they could double as testbeds for Android apps will now be replaced by Linux boxes (some of our devs prefer Linux but were willing to use Windows with WSL because of WSA). This in turn reduces interest in other MS products and weakens the ecosystem.
I'm not saying specifically that MS should have kept WSA -- maybe this really was a waste of money and effort, but I don't understand how MS can repeatedly be so blind to the synergistic value of providing broad options of support for its OS users. Looking at a profit center of a single offering in isolation is largely meaningless. When you remove legs from the table, eventually it collapses, even if some of them, on their own, weren't carrying any weight.
Even their huge success with AI is limited to a subset of the full users they would have had if they had not dropped mobile and Cortana. Every time they drop something, they weaken their influence in all other related areas that intersect with it in some way. Sometimes, that's undoubtedly worth it (you can't keep spending billions on something with no return). But I see no evidence that MS even considers these broader effects, the spiderweb of consequences to cutting threads.