Confusion was almost excusively used for recovery anyway, I think those changes are done to give it its primary goals back.
I actually use Confusion in a ton of different ways, recovery being least common honestly.
I use it to mix up my approaches, like when I make them guess between a dash attack, a dash-canceled shadow ball, a grab, or a dash-canceled Confusion into a follow up attack like Dtilt. I'd also use it in the air when landing to get the opponent to over-commit to a move when they think they can frame trap my landing, and with the 'bounce' Confusion had I could even cross them up before punishing.
Then of course, as a reflector to use against those pesky Duck Hunts, Villagers or Links.
While we will be losing that extra 'jump' from the Confusion bounce, we still get to stall in the air which is also a useful mixup given M2's unique floaty aerial movement. I'm quite used to that type of mixup from using it with Lucario's Dair all the time. I think it'll be just as useful.
Back to using it for recovery though, I think the directional airdodge will more or less serve the same purpose since Teleport seems to have enough vertical coverage to make it back even with all that end lag from the airdodge. Plus, with Confusion's longer reach we might also be able to trip up an opponent standing on the edge trying to gimp us, or even use it to cover our ledge get-up.
tl;dr
I think Confusion will still retain just as much utilty and mixup potential.