To me it sounds more like they are shutting down services that can't be monetized :/
SMS access is useful regardless of whether your handset is smart or dumb. SMS traffic often gets through when data cannot, either because of signal strength or circuit capacity. I have successfully used Google SMS search from my smartphone when it could not load Google.com in the browser--once to find the nearest hospital when dealing with a dangerous medical situation on a hiking trip. Better hope the 3G/LTE coverage is better in the backcountry now, I guess.
This is terribly short-sighted decision by Google.
When I can just click the SMS button, click their picture and go.
People may not cancel their data and get SMS instead but I don't really see SMS going away in any sort of a hurry.