Take it for what you will; I'm sure the reaction is going to be pretty strong. Blizzard has said that it wants people to get out into the world more and not have WoW just be a game where you sit in a city waiting for things to happen. This will certainly do that in terms of raiding.
The flask perk has also been removed, according to the list at Wowhead. It could appear as a perk in a later guild level (if that happens), but as it stands now, Chug-A-Lug isn't in the beta. It's been replaced with ... wait for it ... increased health from bandages with The Doctor is In.
Of course, this is the beta, so it all could change. Time will tell if this sticks or not.