I'm not surprised because the marketing strategy completely stopped making any bit of sense (not that it was making much to begin with) with the portfolio renewal.
The iM's a Corolla hatch to everyone and would do better without the Scion halo around it, the FR-S isn't sold as a Scion anywhere else and being rebranded GT-86 won't do it any harm. The iA is already a Yaris in Canada. Nothing about keeping the brand with this little differentiation made any sense. The only exclusive product Scion has is the tC (okay, not since 2011 it seems), which, honestly, would probably do as good as a Celica because it caters to the same customer base anyway. I think it's going to go away throughout the world because it was selling pretty poorly.
Toyota tried to respond to the problem of its customer base getting older with a new brand while all they really needed was adequate product to meet their needs. There was never a need for this brand to exist. The execs were sold on marketing idiocy.
Even GM's last strategy for Saturn made more sense because they were using it as a way to sell the European portfolio in North America. Unfortunately, the marketing and normalization expenses proved too high at the time.
I don't know what was going through their minds, but I'm glad they're addressing the situation... albeit, a year or two late.
RIP in pepperoni, I'm on my third dead brand. I hope this will improve the ownership experience for us.