This is a good thing. Shadowbane is a MUCH different type of MMO from WoW. It revolves entirely around PvP, you can easily hit the maximum level of 75 in a few days. There were tons of cheated items in the game and other fixes that this needed to be done for.
Not only are people not leaving, lots of new people are returning, looking at getting into the game again (or for the first time) because of the level playfield everyone will now be on.