Amazon in my country has an image problem. Sure people use it, but people hate it for "killing the high street" and other such nonsense.
Facebook adverts picking random local charities and showing how much they've raised is far better, run them on amazon's front page too.
The local hospice I choose has raised £3k via amazon smile. That's far better PR than them giving £1m novelty cheques to some remote city based charity.
Of course it had an impact. It's guaranteed to just be something that's not seen as 'sexy' internally, and therefore has probably had no-one championing it, and it gathered dust and finally... someone just wanted to kill the code.
I've seen it happen first hand in similar sized companies.
I'm quite convinced the motivations for both the creation and teardown of this donation program must have come from the money people, not from the techies. It must have been a tax write-off. Nothing else makes sense, knowing how strongly Amazon is a cost-cutting company.
This is sad. I am currently at $417.30 in donations to my local charity. Amazon is in denial if they think this hasnt had an impact.