Should it be removed? No.

There are valid uses for it. Two weeks ago I sat running shrink against every database on a server (disclaimer: it was a dev server). I sometimes get (large) copies of databases for tuning work and I'll often truncate tables that I'm not interested in and shrink the database. I don't have space for 300+ GB databases on my laptop.

What I would like to see is perhaps a warning on the shrink database/file dialog that mentions side effects.

Should it be removed from the maintenance plan wizard/designer? Absolutely yes. There is just about no justification in existence for a maintenance plan that shrinks databases.

Should autoshrink be removed? Hell, yes! It's the option that should never be enabled (but often is)

Should it be fixed and made smarter? Would be nice, but somehow I don't see it happening. According to Paul, he wrote a smart shrink while he owned that code, and it still didn't go into the product.