Please add them back.
I just returned to this game, and I cant find any blue quests in Act 3. The story skipped several farmer section on to the main town.
While I agree the quests weren't that interesting and unrewarding (practically all fetch quests), I still feel the game is a lot better with them. They gave the NPCs and environment a purpose, which I feel is important for the story.
Without the blue side quests, all the NPCs there just repeat the same line of text. Which is a shame, considering all the efforts and detail that went into them.
I don't believe new players are having trouble distinguishing the optional blue quest. I've used to see a lot of new players complete an Act within a day.
Whereas I like to take my time doing all the side quest, it usually takes me a week to go through an Act.