I am also one of the few that enjoyed and used the Geocaching KML Google Earth plugin...not just on one computer but all three in my household. On top of that, I used the plugin for creating a puzzle cache that would have required the KML file to be used by individuals that wanted to search for the cache I had hidden. The same thing could not have been done with a Pocket Query from Geocaching.com as I was leaving it open for all members to find...not just premium members. Good thing I didn't hide the cache after all as I'd be archiving it almost as fast as it was placed.
As for the option of loading the .gpx file from the Pocket Queries into Google Earth, I don't use that feature at all. It would take too long to receive the queries from Geocaching.com to make it worth the effort and Google Earth with the KML file was fast enough to make a cursrory search and make my plans accordingly.
I feel as if the users of the KML file have been slighted majorly by the powers that be at Geocaching.com and it should be brought back and possibly reworked so that the "issues" with it are corrected.
Just my two cents worth.
*edit* As I think of this more and more and read that the PQ's can "do the same thing," this seems less and less like a website issue but more and more like a money grabbing opportunity for Groundspeak. After all, you can't get PQ's without a premium membership and there's no point in giving away free what you can charge for.
And, just for the record, PQ's cannot do the same thing as the KML file in Google Earth.