This is a terrible move by FCA.
For consumers, probably. For FCA, I imagine it's the right move for a number of reasons:
1. People are keeping cars longer due to cost, and a lifetime warranty is another reason for them not to turn them over and buy new ones, hence keeping revenue down for FCA
2. The costs incurred by the warranty repairs may be more than then the costs of the warranty (losing money long-term)
3. Dealers - customers get cars fixed under warranty, do they lose out on regular repair rates and parts revenue?
I'm sure their actuaries have run the numbers and that's why you're seeing this ending. I could also say it indicates poor long-term reliability, but that's really tough to say since there is more to the equation than just cost of repairs over time.