I agree with you that it was a debacle. It was meant to hold together the Lib Dem-Conservative coalition and once that went to pot it should have been scrapped. I don't think that it removed the Queen's (technical) ability to dissolve Parliament, instead it removed the government's ability to ask her to dissolve Parliament. It locked Parliament into a situation where no one had the power to do anything more than keep the lights on. It was gross.

* Had the Queen tried to dissolve Parliament I think they would have ignored her.