There is also the issue of incentives to participate. The only reason I log in daily instead of weekly is to get those fast passes. By logging in daily, I discover more books I want to read which makes me want to continue logging in and using those fast passes. This drives traffic and advertising revenue. Points are worthless to me, so there's no reason to log in daily. This also disincentivizes those with little to no money - like teenagers - to visit the site, reducing future revenue streams. It may not be an issue short term, but long term, they will lose a lot of business.
They should also know that reading long text on a portable device is uncomfortable, and the smaller screen is harder to read. I am sure another reason they did this was to push people onto the app, but even if I get my fast passes that way, I could never stand reading like that, nor wasting my limited battery life. I am sure a lot of people will agree with me on this. By pushing people away from web, they are pushing them away from their platform entirely. This means both less readers AND less authors.
I have no idea who approved this change, but if I was their boss, I'd fire them for doing something so stupid.