1 Regt AAC are (or certainly were) performing what was essentially a Combat Service Support role for 1 Armd Div in Germany. As German based units are repatriated to the UK, there is less requirement for that role. Merging with 9 Regt in Dishforth consolidates the Lynx experience ready for Wildcat introduction, and keeps 3 and 4 Regt AAC firmly focused on providing direct fire support with Apache.
So to answer the original poster's question (however tongue in cheek), the only place the AAC is going is from strength to strength as a critical and relevant combat arm, this "cut" actually consolidates the AAC and will give them a head start on figuring out how to do more with less, a lesson other parts of the Army may want to learn rapidly.