Bair was our best kill move, by far. However, it was already unsafe on shield against characters like Little Mac, now the reduced damage implies reduced shield stun and makes it even less safe.
Also damage is directly related to knockback according to the KB formula, so our only kill move which doesn't rely on relatively hard reads has been nerfed.
Falcon
wasn't even good to begin with. In how many major tournaments have Falcons been getting top 8, let alone winning? And yet he's getting repeatedly nerfed.
I'm salty as hell. As in desperately salty.
Anyway, this is Falcon's changelog:
http://opensa.dantarion.com/s4/raw/diff-128-144/captain.html
The only change I can identify is his bair damage nerf, all others are gibberish to my eyes.