Can someone explain to me why the following is being removed, and if it has an impact on pre-compiled and / or compiling binaries via something similar to cfcompile.sh • cfencode.exe/cfencode.sh Utility: Removed due to security issues.

If there are known security issues, Adobe's unlikely to expound at all on the details. I too, am curious about this. Based on the beta2, it feels like they're moving away from executing precompiled bytecode in general, which is a curious direction to head.

Found in the "Feature Removals" document cfencode.exe/cfencode.sh utility, located in cfusion/bin - "Removed due to security" issues and lack of recent updates.", Adobe just trying to reduce overheads ?

I haven't heard anything official from Adobe, but my best guess is that the encryption provided by those tools was rather weak (I know it used DES at one point), used a hard-coded encryption key, and gave customers a false feeling of security since there are a number of decryption tools available in the wild. Since there are very few (if any) commercial projects selling copies of "packaged" software written in CF, I'd surmise that they decided to simply remove the feature rather than create a more secure way to distribute code in an encrypted form.