Also, think of it this way. On a normal fight card there are 10-12 fights, so 20-24 fighters. With the current 450 person roster, it would take about 20 cards to allow each person to fight once! Fans want to see titles defended, they want to see the top guys fight a couple times a year. With a huge roster this cannot happen.
These cuts, overall, are good for everyone. It might suck at first, but it allows fighters to not get shelved and can go out and fight more frequently. It may even help them overall and get them back in the UFC. For the UFC, it allows them to deliver the highest quality product that they can.