Most people buy new computers once in a while. It's quite the news that you can't simply re-install retail Office on your new PC. I think it's actually the first time this happens with mainstream retail software.
And if they really tied it to hard drives, then this will affect lots of people. HDs aren't exactly the reliability masters.
And the loss of the family pack will affect most private customers. The subscription model is almost always a hefty price increase in this case.