They are NOT removing the ability to link to files in your Dropbox. Just the Public folder itself, which is no longer needed since any file can now be shared with a public link.
EDIT: And for those of you concerned by any impact on using Dropbox as a CDN, there shouldn't be any issues. The links that Dropbox generates from your files have a bit of chrome (a preview of the contents of the file and a couple of buttons), but you can still get a direct link from the "Download" button.
EDIT: And for those of you concerned by any impact on using Dropbox as a CDN, there shouldn't be any issues. The links that Dropbox generates from your files have a bit of chrome (a preview of the contents of the file and a couple of buttons), but you can still get a direct link from the "Download" button.