The Beast is staying per the comments of the announcement.
Honestly, I think this is a good move. People eating up ADRs just to see the castle and the Beast and only ordering coffee or a cupcake really grinds my gears. I'd been holding off on going to BOG for dinner because I heard the food wasn't great and there's no PPO advantage- if this is a real improvement, I might check it out. This ensures that only people who want to dine at BOG get ADRs, not moochers. And Disney ensures they're getting $55/$35 per guest. Win-win in my book for everyone except ADR-grubbers, who don't deserve a win. Oh, and maybe a loss for people on the dining plan, as $55 per shouldn't be two credits- more like 1.5, but I know that's not allowed.