I'm also a 2007 alum, and I steered clear of CS as an undergraduate because of the confusing organization you describe above. If that organization wasn't so confusing, I would have tried CS out (vs. the econ BA I hold right now and the MSCS I'm working on now).
The department may have problems, but shutting down research throws the baby out with the bathwater. Degree consolidation would go a long way to improving student enrollment.