Ive worked for Betfair for many years. They really seem to value affiliates and I doubt very much they would do anything to harm their reputation with them. Betfair have plenty of cash and I doubt they would do anything to save a few pennies.
Sounds like they are following the advice of their legal team thats all. Sure it sucks for you and all other Romanian Affiliates but if they could avoid it then I expect they would.