Is it really necessary for bitcoin to survive as money to have all those stupid "smart contracts"?
It is not necessary, but once you have it, then removing it would mean confiscating people's coins.
Because of that, I wanted to design it to support every possible transaction type I could think of. The problem was, each thing required special support code and data fields whether it was used or not, and only covered one special case at a time. It would have been an explosion of special cases. The solution was script, which generalizes the problem so transacting parties can describe their transaction as a predicate that the node network evaluates. The nodes only need to understand the transaction to the extent of evaluating whether the sender's conditions are met.
And now, BIP-110 says: "your Script is too complicated for us to understand, let's make it unspendable". If it would succeed, then people would never know, where that "too complicated" starts, and where it ends (because BIP-110 supporters never defined any list of cases, which they wouldn't block in the future). Which means, that it would be necessary, to constantly ask Luke, which Script will be accepted, and which will be blocked, because otherwise, you would risk sending it to some Script, which would be blocked later, just because it is too complex for some people to understand.
Edit:
New output scriptPubKeys exceeding 34 bytes are invalid, unless the first opcode is OP_RETURN, in which case up to 83 bytes are valid.
That means a simple 2-of-2 bare multisig will be invalidated by BIP-110. Which means invalidating things, which were widely used since
BIP-11, created in 2011.
Edit: Even better: if someone has a timelocked transaction with a single uncompressed public key, then it would be invalid:
+--------------------------------------+
| Alice 50.00 BTC -> Charlie 99.99 BTC |
| Bob 50.00 BTC |
+--------------------------------------+
| timelock: 2026-10-15 |
+--------------------------------------+
If Charlie's public key is uncompressed, then his coins are burned by BIP-110. No multisig, no tricks, just a plain, old, P2PK, used by Satoshi.
Which means, that after activating BIP-110, this transaction would be invalid as well:
https://mempool.space/tx/f4184fc596403b9d638783cf57adfe4c75c605f6356fbc91338530e9831e9e16