That's pretty much how I feel. I currently have the following stuff shared in Mesh: a peer-only share (the folder is called FolderShare for historical reasons ) which contains stuff that I need on my PC and laptop but don't need in the cloud and is generally too large for it anyway. A SkyDrive shared folder for really important stuff that I want to be able to access anywhere. I also share (peer-only) my VS Code Snippets folder and my IE favourites.
With the new SkyDrive client, I can do only one of those. If they truly intend to discontinue Mesh, that means I need to find a third-party syncing solution (even though I know I can trick SkyDrive into syncing favourites and code snippets, I need a peer-only syncing solution).
Additionally, I have lots of stuff on my regular SkyDrive that I don't need synced between my machines. My laptop has only a 160GB SDD drive, space is precious, so I don't want to have GBs of stuff from SkyDrive on there that I don't need just so I can sync the stuff that I do need. I have previously said I didn't like the separation between SkyDrive's regular storage and Mesh's synced storage, but what I meant was that Mesh's synced storage should just be a folder in the regular SkyDrive UI. Not that it should become mandatory to sync everything you have on SkyDrive. An option to select which SkyDrive folders you actually want to sync would be most welcome.