In losing character & personality in service of... sending a good message? Hell, even it's frickin' name was changed. Ridiculous if you ask me, especially being a game where you can use a chainsaw to split someone in 2.
There is a clear loss in connection to its audience in the latest entries.
Actually, no. There's no loss in 'character and personality' since smoking was never a big thing in the previous games. As others have already said.
The name was changed because everyone just calls it 'Gears'. Has nothing to do with anyone's enjoyment of the game.
The chainsaw bit has already been answered multiple times, and is comprehensively addressed in the OP article. There's no link between video game violence and real world violence. Numerous studies have linked teen and young adult smoking to depictions in the media.
The last game had a metacritic of 84 and the vast majority of the critique it faced was as a result of being rather 'more of the same' rather than being innovative. So no, it hasn't been drifting away from fans and there hasn't really been a clear loss in connection.