Cheaper will always appeal to some people - and there are surely plenty of potential punters out there who won't particularly want tethering or Feel at Home.
Of course this two-tiered approach means Feel-at-Home loses a bit of its cachet, as it basically means it will now cost extra for customers to use their phone abroad in the relevant countries, because they'll need to be on the premium "Advanced" plan rather than the basic "Essentials" plan.
I know its all about data on this forum, but I do know people who greatly value Feel-at-Home for the ability to make and receive calls and send texts plus some light data usage in the relevant countries without paying extra / over the odds.