I hardly ever eat beef and I buy mine from a local butcher too (so I'm alright Jack ;-)). However, people on a very strict budget, maybe with a family to feed, don't have that luxury. I know when my children were little and I was making spag bol or shepherd's pie, I just bought (almost) the cheapest mince I could find. I didn't buy the very cheapest because I learnt my lesson a couple of times and it was very fatty. In the end, it's the poorest who will end up with low quality beef, which is why it's so important that minimum standards are enforced.
I don't really know enough about this latest move to know what it's all about, but anything which makes the source of food less transparent is not good.