I don't see anything wrong in ending the provision of free formula other than for emergencies - it is already the norm in many areas of the country anyway.
I do not agree with lovingthecoast that every woman should be expected to go into hospital with some formula just in case though. If you have had one baby and feeding hasn't gone to plan then, I guess, for subsequent babies, you would be a little foolish not to plan ahead just in case bf-ing went wrong again. However, for first babies, I don't think you necessarily are prepared for not being able to do it. Certainly, my impression before DD was born was that BF or FF were a choice and if you wanted to BF and were prepared to persevere, you would be able to do it. Because I fully intended to BF and was a bit superstitious about buying things for the baby before she was born so I only bought the absolute essentials, I bought no bottles, formula or steriliser.
When everything went tits up in hospital and DD, despite appearances, was getting nothing at all from me and was severely dehydrated, and the hospital insisted on formula feeding, DH was sent out to the supermarket next door to buy supplies. Whilst DH was gone, the nurse, after speaking to other people, did manage to find a bottle of ready made stuff to get DD going as quickly as possible (the most poignant experience in my life to that point was seeing her satisfied little face, almost drunken really, after she had some formula - possibly the first proper sustenance she had had since birth. Then I really felt like I had failed her). Had DH not been with me and able to dash out to the shop, the hospital would have had to have provided me with far more formula than they did.
I realise now how naive I was expecting that, as BF is natural, I would be able to do it, but I am fairly sure I was not the first, nor will I be the last person to be so naive. So for that reason, I think hospitals will always have to keep supplies for such situations, particularly for first timers who are a bit clueless not sufficiently prepared, like me.