I can't argue with results, but it does seem odd to remove a LotD. I know you can't use 2 now, but you double your odds of having it in hand at 6 mana.
I agree with you 100% on your LV take. Yawgmouth stated clearly in balance chat that he sees several cards as S tier and one as "above S tier". That one has got to be blade. I think there is a high likelihood that these cards will get nerfed. At least, I hope they do. That causes it's own problem: people will feel cheated.
We also know the balance team was playing with the cards. They knew they were busted. The likely (although unhappy) conclusion is they decided to release these in their OP states to drive sales.