What this means: Now, when searching on Linked In, you will only see full names and contact info for your 1st and 2nd level connections.  Others will have only a first name and last initial and even if they have chosen to display their email and phone number, it will not be visible to you.

Why you may be concerned: This makes it more difficult to make connections and effectively search outside your immediate network.

Why LI did this: They are making these changes to encourage people to subscribe to LI, rather than to use it as a free service.

What you can do: You can choose to upgrade to the paid version of LI but at $99/ month (for the lowest level package) I think that only true, hardcore, networkers need to consider that option.  A much more cost effective way to optimize your use of the free version of LI is to make sure that you connect to all relevant people. 

While I am not advocating inviting everyone in your address book, nor accepting every invitation, do make an effort to connect to anyone that you currently work with, know or went to school with.  Consider joining groups that focus on your professional and/or outside interests.  This way, when you are searching outside your immediate network, you increase the odds that someone you ARE connected to will be connected to the person you wish to meet, making them a second degree connection and thus, easier to contact.
Actively connecting with other professionals on Linked In is the key to optimizing your use of this powerful tool.