If they were marketed as different products then there didn't be quite as much panic but since this is V2 and V1 people are afraid that the product they like will be unsupported soon since it's an older version.
Also, while V1 still exists for the time being it is fair to assume that future updates will only apply to V2. One user on here already found this to be true because although a new region was added, GRU, they could not deploy to it with V1 and was told it only supported V2.
VM/Containers allow people to develop and structure the app however they want, largely decoupled from deployment/infra.
I don't understand how many people have no issue being told to rewrite your apps so they fit inside lambdas...