It's funny how WotC is creating a demand for (or at least an interest in) a safe place to host tools for their paying customers' use.
Don't most game publishers (like Paizo, for example) actually encourage this level of engagement with their game? Didn't TSR encourage it with D&D back in the day? I realize that in the modern age of digital duplication and distribution there is a fine line to tread, but I have a difficult time imagining Paizo demanding the takedown of a tool like FA's character generator that would help people enjoy Pathfinder.
I share the hope that ForgedAnvil finds a new home for his magnificent character sheet.
There is no video game that doesn't improve with user mods. None. I just found out about some mods for Master of Orion 2, they completely refine the game and make it great again.
This entire website (and others) exists because of user created content. Everything here, the forums, the CS, the various reviews, advertising, etc. FA most likely increased sales of various splat books as when people saw the content in FA they wanted to get the book. I don't think (and do not know nor heard of) a D&D group that refused to buy a book because the content was already available in FA or elsewhere. Its doesn't happen. I get that a group might only have one copy of an adventure, but in any group most if not all get the PHB, Sword Coast and X, at least 1-2 copies of the DMG, Volos and Monster Manual.
In attempting to "support" Beyond WoTC just punished some of their best and most consistent customers, for nothing. There will not be a sudden spike in Beyond sales. The people who know of Beyond most likely know of this site already, and use some form of CS from here.
On another level, WoTC has misread their audience. D&D at a group level is cheap entertainment, you spread the cost of materials over a group and then spend hours enjoying the game. A group of say 5 people might have a total of 3 PHB, 2 Sword Coast, 2 Xan, 2 DMG, 2 MM, 2 Volo's, 1 SKT, 1 PoTA, 1 ToA. That's 16 books at say $40 each for $640, if you play and read and create 50 hours each that's $2.56 an hour. It mostly likely more than that, a group of 5 might put in a total of 200 hours each over the months and years, that's $0.64 an hour. Its a great deal. Where D&D spend their money over time is at conventions and things like that and in the shops. This digital model also harms the shops, which is your player base, in the name of increased profitability.
Now WoTC wants each player to buy the whole thing for themselves, and then play with each other. They believe its like an MMO, where each player spend $40-60 to get into a game. WoTC wants you to spend $150 + for PHB (required) Sword Coast (of course) Xan (extras) Volo (races), all up front, to essentially use a PDF generator.