The "no code" and "slow code" licenses are now a matter of "fact" and I doubt very much if the FCC is going to "retract" any of the present thinking in this matter. In fact, there is a definite chance that after the next World Adiminstrative Radio Conference (WARC) that the CW requirements for an amateur radio license will be dropped completely. Frankly, I think this international regulation is the only reason that the FCC still requires a knowlege of the International Morse Code for getting a license.
There have always been "SOB(s)" in the world, and the ranks of amateur radio is not excepted. Back in the late 1950s and early 1960s the Technician Class (that had the exact same theory test but only had a 5 wpm code test) was looked down upon by some amateurs with higher class licenses. Then, the "no code" came into place. Has this downgraded the quality of amateur radio operators? Yes, and no! In the past the code requirement did keep out a number of persons who had the ability to get a license but were, in a number of cases, too lazy to learn the code. Other people just believed that they would never use CW and therefore had no reason to learn the code. With the elimination of the code requirements for operation above 50 MHz, there has been an influx of amateurs, the vast majority of whom are not only "good" citizens, but are contributing to the service as well (you note that I do not use the term hobby - under FCC regulations amateur radio is a SERVICE, not a hobby). Unfortunately, the elimination of the code requirements has also allowed a number of people who have little, if any, regard for rules and regulations. These are the "freebanders", illegal CB operators (not those people who operate using 4 watt output, type accepted rigs), etc. Also, there have been a very small number of older amateurs who have allowed themselves to be brought into this arena as well.
In the past, the amateur radio service pretty much regulated itself. Now days, there is a small, but significant number of amateurs as well as un-licensed personnel who "thumb their noses" at regulation and thus give every licensed amateur and, although unlicensed, legal CB operator a bad name.