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In a sense it's not a dowgrade, it's matte and has a soft feel, so it is nicer. I don't think they knew how terrible it was going to hold up over the years. The 04.5 and 05 were probably fresh and didn't scratch so they used even more in 06+. I like how it feels and looks but this is the second waterfall dash pieces I buy and I'm not about to spend another $500 so it can start scratching in a few years lol.
Sounds about right... point of comparison: I had a '00 VW Passat (B5 = Audi A4) with a similar "soft touch" (so called) luxury interior. I also own a '02 Dodge Dakota that has this cheap, hard, plastic interior that all the auto journalist complain about during car reviews. Guess which one held up better? Yep the Dodge, it looks like new. Where as the VW peeled and scratched like crazy, it was horrible and after 5 years looked it was used to transport kittens. That soft touch material just doesn't wear very well. Similar to how plain cloth seats pretty much last forever but leather cracks over time.