Well, reduced init penaltys are out of the question, since every MA will pick one up then. Further complicating the melee issue.
I don't' really have a clue how to keep this item valuable with this nerf. Open a temporary official FC service "trade your ELLTS for another valuable item or quite a bit of cash"?
/me ponders some and wanders off back to work... will be interesting to see how this post looks at the end of the day. ;)