It's always sad to hear when governments do that IMO. What were some of your specific complaints about the rental experience. Was it just too expensive in order to offset the taxes?
Out of the water is still more important to me than the diving so I will definitely mark Noronha on my itinerary, thanks!
Expensive and "old" gear. It was properly functional though, but the regulators I used there were the factor I decided to purchase my own quality gear.
Fernando de Noronha has some of the most amazing beaches I have ever seen, people are super nice - Brazilians are nice people but there people are nicer - and the food is great. For Canadian standards you will not find things super expensive (a good meal for two with drinks for the equivalent of about 60ishCAD), but you can find cheaper options if you are on a tight budget, but remember it is an island, usually supplies are limited on islands and prices tend to be on the high side. Another thing is not to leave for last minute, lodging is limited (and on the expensive side) and flights fill up quickly, especially during holidays.
If you can splurge a little bit, I recommend the Varanda Restaurant and I highly recommend Mesa da Ana, it was the most amazing dinning experience my wife and I have had so far.
I liked the dives there; however, I was unlucky with pelagic activity and I was expecting healthier reefs. Saw many nice big turtles though.
It is one of those paradisiacal places that makes you almost cry when leaving...