Believe me, as an employee of Tesco, my colleagues and I are totally ticked off about them removing the arrows and such.
However, in the past couple of weeks customers were disregarding them anyway, and as one of only a couple of people in store who would actually say something to customers, I was getting to the end of my tether being a verbal punching bag for people who can't follow simple instructions.
I don't know about the store you're referring to but ours hasn't completely scrapped the queue outside, just upped the number of people allowed in store. My biggest annoyance though is removing the specific queuing aisle. We had ours down clothing which is basically dead all the time, but now they can queue at any till they like, which means they're queueing down the aisles, making it impossible to fill.