I have mixed feelings on this; I'm reserving judgement until we get some kind of official statement from BioWare (which will come eventually, don't worry).
I have a feeling it's a combination of both technical and financial limitations - having to create additional content, only to discover it doesn't run well on last-gen consoles (which is what I suspect has happened here) and you need to strip it back is an expensive venture - in both time and man hours. It's very easy to forget that even just one employee having to dedicate his time elsewhere can cost a company a lot of money, never mind several. We're reaching the end of Inquisition's new content lifespan and no doubt money assigned to this project is running dry. Business is business is business.
I'm glad that I held off on Inquisition until I got my PS4 a few months ago - I knew at the time, no matter how itching I was to play it, that by playing the PS3 version I would be playing a sub-par iteration of the game and I wasn't okay with that (this was without reading any feedback on just how bad the last-gen versions were).
Still, I feel for all the players affected by this. It can't be nice - especially those of you posting on these forums who are obviously passionate about the world of Dragon Age, the lore, the story, etc (or you would have never signed up!)