Wow, that is a pretty big post. It seems like you have some good points; however, I cannot say that I dislike the new format. I believe that 24 games is too long. Such a match would exhaust both players and ruin the quality of their games.
Also, in a shorter match, every game is more important. This leads the players to play stronger moves, which is, after all, what the viewers want, right? FIDE is paying these people so that they will get spectators to watch, which they need to stay in business.
Finally, I also think the shortening of the Candidates match is a wise choice. This gives the winner more time to prepare against his opponent, and get ready for the World Championship. Not to mention, anyone who has just one the Candidates match will be extremely tired, and need a period of rest before any serious study can be made.
Once upon a time title matches were at least 24 games. The challenger qualified in a tough cycle, for example Spassky won several 10-game matches against top 10 players like Keres, Geller and Tal. However, the last decades the changes have been big. 1993 had a 24 game match, 1995 had 18 games, 2000 had 16 and 2004 had 14, since then it's been 12, and the number may well keep decreasing. The same thing with the Candidates. Short won a 14-game final, Topalov beat Kamsky over 8 games in 2009 and in Kazan all matches but one were four games long (the last one six). The most traditional participant with regards to matches was probably Kramnik, and even he said that he considered four game matches to be "pretty long".
No one questioned that Spassky-Fischer, Fischer-Karpov, Karpov-Korchnoi and Kasparov-Karpov were the strongest players from the end of the 1960s to the 1990s. They were also the top two on every rating list the first 27 years it existed, with exception for three one-list-drops to third by Korchnoi/Karpov. But those were the only times in almost 30 years Fischer/Spassky, Fischer/Karpov, Karpov/Korchnoi, Kasparov/Karpov weren't top two on the rating list. "Top two" (on the rating list and in the common perception) and "title match participants" were almost synonyms.
Then things started to deteriorate with knockout World Championships and a "private" title with only two players in the Candidates 1998. The loser was later given the title match, won, and defended thanks to draw odds after an eight player cycle the best players declined. The reunification match was decided in rapid and then there was a tournament World Championship. After that an automatic match for the previous title holder was followed by Topalov getting a title match just by beating Kamsky in an 8-game match.
http://en.wikipedia.org/wiki/World_Chess_Championship_2012 lists more than 25 changes made to the latest cycle, that took many years to complete and still was decided by a short knockout competition with three decisive games of classical chess. The Candidates matches when Anand qualified to face Kasparov had 30 decisive games.
Title matches are now 12 games long, but the best players are less likely to reach them than in Fischer's days. Anand and Gelfand have gone 4-7 years without winning a tournament, even if it will continue to be said that they aren't interested in doing their best in any other events than knockout qualifications or title matches. FIDE's latest cycle change (also this time during an ongoing cycle) turned the Candidates into a round robin. Unless there will be as many changes as last time it does look more promising, but to me the World Championship has still lost much of its former glory.