I know Maleme and it's surrounds very well as we usually meet up with friends there for Battle of Crete commemorations in May. (yes it is a long drive from Plakias)
Its a small town with a unremarkable beach, and not a lot going on. I haven't any information about tour operators pulling out.
I rather suspected that it will get eaten up as Platinias expands westwards down the coast in the Hersonissos manner. Already the gap between Platinias and Gerani is disappearing..Maleme next.