Expanding the minors is good for the fans. shrinking them isn't.
Having lived in minor league towns, the games are fun and help to expand interest in the sport, all the way to the majors. There were a number of players I have been interested in because I had seen them in the minors. While I've always been a Dodger fan, I know a number of fans who root for the Dodgers because a player they followed in the minors played/plays for them. I'm certain that works for fans of other, lesser teams too.
Broad minor leagues help to grow MLB fandom in the long run. Eliminating many of the teams would hurt MLB in the long run. As it is, with the minors parents can affordably take their kids to games. Eliminating much of the minors would reduce that significantly. It would also reduce the quality of play in the majors, since later round surprises wouldn't happen.
It is insanely short sighted, IOW.