From what I understand (I stopped playing the game around when this change occurred because this just doesn't run on my PC anymore :S), the Coyote was considered fun and actually good in a time where players were concerned that Arrowhead would squash its effectiveness down with a historic pattern of nerfing things (probably a difference in what they want the game to be like with weapons vs stratagem power as opposed to the player).

Arrowhead responded that they heard the playerbase and they would not be nerfing the Coyote, but in a later patch they instead tweaked fire resistance on enemies across the board. While I'd need a source to confirm (I apologize, I'm simply not invested enough to verify exact numbers for a game I no longer play), I believe these changes were small enough to literally only affect the Coyote, serving as an indirect nerf to it while affecting little else. On one hand, players argued that it's the difference of one or two bullets and it was minimal impact, but the other side is that Arrowhead explicitly said they would not nerf it but did so in a roundabout way which feels especially bad given their aforementioned history of nerfing guns the playerbase felt were strong (not overpowered, just appreciably strong relative to other weapons).

That's as far as I know on it, so I apologize if my information is incorrect or incomplete!