Honda is not having a good year. The earthquake, sales tanking because of that, the "new" Civic landing with a resounding thud, and now CR piling on. Come to think of it, I haven't read a single good review of the '12 Civic in the press.
CR's decision should have Honda scrambling since lots of auto-illiterate folks base their buying decisions in large part on their reviews and rankings. Having the Civic no longer stamped with the "Recommended by CR" badge is going to hurt sales.
Agreed, the South Korean and American-based carmakers are indeed giving Japanese-based makers heartburn right now.