Peter,
I couldn't agree with you more.
I think it is probably best if they close the island. It has really gone down hill since we first went there in '94. The island was still virtually pristine at that time. You could get guided "jungle" tours of the interior of the island. Now you wouldn't want to see the interior even if you could. With 5 resorts on the island there are now 5 different septic/sewage systems, 5 sets of well, and 5 huge garbage heaps.
In '94 there were no water wells. All water was captured rain water, water conservation was encouraged, and the only hot water was the result of solar heating. I understand that they have pumped so much fresh water out of the ground there that the fresh water lense has been contaminated with salt water. And as anyone who has been there recently can attest too, all the resorts now have to have water brought over by boat.
I had also heard that the Malaysia government has been trying (unsuccessfully) for several years to get the island resorts to work together to consolidate their support structure and to reduce their impact/footprint on the island with little to no success. This closing may be the result of the operators inability to to work with the government.
It will be very interesting to see how this works out.
Rickg