Why remove it?
1/ It encourages n00b bashing.
2/ It's abused in the sense that people use it to reset and improve their position (it is intended to allow people who missed the start to join the game without being at a massive disadvantage).
3/ It's a way for those who failed to exile into their preferred galaxy to get there at the expense of the galaxy they were in previously. We all know how annoying it is for a galaxy struggling along in the top 50 (but making the best of it) to find 2 of their best planets delete themselves to late-start in a "top" galaxy.
But I agree that we must also stop the abuse of the exiling system. Just take a look at the top galaxies this round - it's absolutely ridiculous. (If that's the result of random good luck then I apologise unreservedly).