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How the hell are people defending this decision? What's the reasoning behind it?

Blizzard will loose the 1% vocal minority that talks a lot of crap and hack most of their games and they will gain the casual Wow market.

That would have happened, regardless of whether they left LAN in or not (scratch that, the <1% isn't lost with LAN in). All this does is inconvinience those who do regularly LAN.

Taking away features from paying customers in the name of piracy is not the way to go. The damn pirates will have their own emulated bnet servers, removing LAN won't do shit.

Will this one decision noticably impact the game's sales? I doubt it, but it's still a step in the wrong direction, and those into LAN'ing often will feel it.