There are less 40 cal options in 1911 - it is the slowest moving of the calibers in single stack so that makes sense that there will be less options.
As for the models; it really doesn't effect Canada much.
VIP - we imported and sold (with long barrels) maybe 3 in the last 7 years.
The GM as the top of the line race gun has been there for a while and race guns evolve - it will likely be replaced in the new year.
The STI Shadow wasn't legal in Canada.
Ranger IIs - there were a lot of 4" STI 1911s (Lawman, Tactical SS, Spartan, Ranger II) so it made sense that the oldest version got trimmed.
Legend - too many variants of the 2011 "Standard" gun... Apeiro, Edge, Executive, Legend, USPSA Double Stack, IPSC Gun. Some trimming made sense.
Sentry - well - it's a great gun. I am going to miss that one.
The USPSA is also a great gun, a little pricey due to the SS top end, and I will miss it too. Might have to grab one from inventory for myself before they sell out.
Of course, STI will continue to warrant all of these guns like they always have.
There are still a couple distributors in the US, and the foreign distributors still do their thing. (like me) In the USA, there were some "distributors" that really didn't sell to dealers - they just got a decent discount and then torpedoed any dealers trying to sell the product. That was never going to last so it's not a surprise that it got cleaned up.
STI seems to be transforming its business model to be more like all other firearm manufacturers; they focus on manufacturing; they have a limited number of customers; distributors - who work with the dealers to get the product to the customer. It was bound to happen sooner or later. The model works for Sig, Taurus, Colt, Springfield, Tanfoglio, Magnum Research, Smith and Wesson, Ruger, so it's proven.
Generally, I think their changes are good for both business and the end customers.