They're not shutting down deals. They're shutting down the desktop version - the mobile deals product still lives.
I think this is a sign that people are more likely to use a deals product when it's relevant to their location and current activity.
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Well, not even. Facebook Check-in deals launched in Australia, with KFC being a big partner. It was expected that the average store would see 150 people redeem the deal a week when in reality each store would be lucky to get 1 a day, most being from KFC staff.
I work with 2 of the media agencies who do these bookings, one of which handles KFC.
Results haven't been great but it's a fledgling product. There is a lot of consumer awareness to be done to get it going.
The brands are not about to stop, I believe they see it as an experiment that will hopefully pay off.