I read it that are basically reducing everyone's money to fit the new economy.

If you take your current gil count, and knock the last digit off, that's how much you'll have in ARR

This isn't bad for anyone, regardless of how much money they have, because it happens to everyone simultaneously.

If you had 10x more cash than another player before, you will still have it after. A world wide economy change like this isn't necessarily needed, but it does make the numbers smaller and easier for everyone to deal with.

Its the difference between counting everything in pennies or pounds. except because Gil has no smaller derivative they are manually adjusting it, something easily done with a virtual currency.