Do people think this is a good or bad trend? Personally, I believe this is a worrying trend, as it harms diversity in zoo collections.
I'm not sure if you have the relationship of these two things quite right. It's hard to disentangle the shift towards biogeographic exhibit complexes with the shift to larger and more irregularly shaped enclosures; more space for theming and landscaping; and a shift to managing larger populations of fewer species. They are all part of the same overall trend and happened over the same time period, but they are not inevitably linked.
I doubt biogeographic exhibit complexes exclude
that many species; most of our complexes are 1) North American/native, 2) South American tropical, 3) African forest, 4) African savanna, 5) Asian tropical/temperate, and 6) Australian. Not many species can't at least loosely fit into those, and that's ignoring the fact that most zoos have some number of standalone enclosures in addition to the biogeographic areas.
Many of the AZA's struggling SSPs are from areas lacking ABC animals- such as Nubian Ibex and Kordofan Aoudad.
Both of these can be folded into African complexes though, nor is it obvious that a shift in exhibit organization is the reason they are struggling. That being said, hoofstock are one of the groups that is most likely to be affected by a downshift in collection sizes given that most are interchangeable for guests, take up a fair bit of space, and are subject to USDA restrictions on importing and transporting that makes them not worth the effort.
As for my overall opinion: I think there are merits to both approaches, and I appreciate zoos having a mix (or having a mix of zoos doing one or the other). Biogeographic is good for immersion, many educational themes, relevant landscaping, and showcasing a specific part of the world. Taxonomic concentrates similar husbandry needs and expertise in the same locations, allows the public more choice in what they want to see, and can develop appreciation for specific groups of animals like rodents, bats, invertebrates, or frogs.
I think taxonomic organization works really well for reptiles and amphibians, being better showcased in a dedicated building rather than scattered around in various corners where they might get overlooked. I also don't mind leaving complexes that work, like Red Rocks which is indeed a great area to walk around. While I'm not much into the heavy lean on over-the-top cultural theming in American zoos, I can appreciate the desire to recreate an authentic African savanna or Amazon jungle experience and I don't mind seeing these as well.