This is what can be expected when a sport becomes primarily a business so that, from a strictly business point of view, it was the right decision. The problem is that for racing to continue to exist as a business it must be perceived by the public as a sport whose participants are not solely acting in their own self interest. What is lacking in racing is a powerful central governing body whose primary interest is the protection of the sport. Instead we have the inmates running the asylum.
I'm not sure I remember this correctly but I once read that the German Jockey Club, in addition to never having raced on performance enhancing drugs, a horse must also have raced for 2 full seasons before it can stand at stud. Other sports have powerful central bodies for their own protection. That's why athletes in other sports would never be considered for their Halls of Fame after only playing a few games. In addition, this is what racing needs so we can have uniform drug laws as well.