I agree with Mike, this was a move by EA on their own, so it's not like they were pressured to do it.
However, I find it funny, because most gamers I know could care less about Medal of Honor anymore. Besides, whats the difference of being a Taliban or being a Nazi? The early MOH games are based on WW2 and it was always a popular, and laughable, feature that you had to choose between being an American and being a Nazi in multiplayer games.
Ultimately, most gamers don't care what color their sprite is wearing, they just wanna WIN by shooting people in the face....now I ask...is that so bad?