This is a feature that Apple decided we don't need, so they changed the feature to only show up when the battery needs changing.
A more charitable view is that it is a feature Apple decided was inaccurate and therefore unhelpful, or worse - misleading. Earlier this year the tech press, as can be seen here in MacRumors, there were reports of cases where the battery indicator was showing a very incorrect charge status. We’ve all become accustomed to iOS device lithium-ion batteries showing the exact percentage of charge remaining and perhaps expect that in every situation, but the button batteries are very different as shown in this electronics article here.
The article describes the difficulty in calculating the remaining power charge in these type of batteries especially when the battery is in place in a device. It goes further and beyond my knowledge of electrics, but the point is that gauging the battery level of a button battery is more art than science. It is reasonable then to conclude that the earlier iteration of the AirTag battery performance in iOS was closer to a best guess than reality. I can see though that some owners valued that indication whether or not it was accurate.
It’s worth comparing the AirTag with a similar product, the Tile Pro, which takes the same battery type - CR2032. From what I can determine the Tile Pro does not give any indication that the battery is low and needs replacing; it simply stops working. Is this approach preferable? In comparison the AirTag still gives the owner more oversight of the battery than the Tile device offers.
If you wish to convey your concerns to Apple send some feedback to Feedback - AirTag - Apple