I had not heard about this. Though, I don't really do facebook or enough social media to be in the know. This puts a pretty big question mark on States, IMO. Moving the tournament around the state from year to year looks like a more viable discussion. Hmmmmmm.....
I had heard that this idea had continued to meet resistance from Discraft. I think there are other area that have the proximity and quality of courses to host the AM version of States. Seems that becomes magnified by the loss of Flip.
Edit: Maybe this discussion would be better served in the Michigan Course thread.
This news hasn't hit the main Michigan disc golf community yet on social media, and I know the club in question, more so the TD of States, is already trying to redirect the blame.
There are a lot of nuances happening in regards to all you mention, and you're right, this would be a worthwhile discussion over at the Michigan thread.