To a degree I think it makes sense. The business models of law firms - both civil and criminal - seem wrong to me, and there's an awful lot of money floating around the industry rather opaquely. Am I right in thinking that about a quarter of solicitors are partners? No other business could run with that proportion of people in its top pay bracket.
On the other hand, as you say, everyone deserves high quality legal advice and counsel, particularly where their liberty is at stake.
I know a couple of judges, and they have both said that the last couple of years have seen an increase in litigants in person, which in turn has significantly increased their own workload. Effectively, the cuts are just pushing the costs onto the court system, and probably not saving a great deal of money.