It's just what it says on the tin.
The Moon and the Dreaming City are actively part of the game and some quests still take place on those destinations, yet everything you earn that are planet specific is worthless. I'm pretty OK with sunsetting in general, but I think that maybe we went a little overboard here.
Shadowkeep and Dreaming City gear and weapons should un-sunset. This would show a bit of good faith, but also give people more things to do in the game and in those destinations. It also prevents the feeling that you just wasted your time grinding something out, only to be reward with a max 1060 item.
On that subject, world vendors like Nessus and EDZ should not be giving out useless items when you turn in materials. The game invites you to do this, but it's really just a material sink because you don't get anything useful. The option to turn in mats should be removed and the planetary loot pool should be earned in game like it is on Europa; through bounties and high value targets.
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Yeah they could've at least made dreaming city loot move forward. It's very specific loot so it wouldn't have made a difference.