Olympic gold medallist Barbara Kendall hit out at the decision saying kiteboarding belongs at the X Games, and judging was so subjective because of the tricks.
Jacobs believes that's exactly why freestyle was ditched in favour of circuit racing, a form of kiteboarding that had never interested the four-time New Zealand open men's champion.
"It was pretty cool to hear we were in the Olympics but then I was bummed to hear it was going to be racing," Jacobs said.
"All it is, is a bunch of guys going out and tacking upwind - pretty boring really. Freestyle is where the excitement element is at for me but apparently it's too hard to judge or the judging format's too inaccurate for the Olympics."
Jacobs is struggling with the PKRA judging structure this year, with riders scored on seven tricks from 12 attempts. He has finished fourth and ninth in the first two PKRA tour stops in Morocco and France.
"Now you have to do seven tricks and perform them well, and what you're getting is people beating guys who are taking a lot of risks. I'm one of those guys who is a risk-taker, crashing a lot trying to do high-scoring tricks."
Jacobs hasn't ruled out turning to racing in time for the Rio Olympics but said right now the discipline was the domain of a lot of older riders who had pioneered kiteboarding internationally.
"At most PKRA stops they have freestyle as well as racing but there isn't a lot of crossover. The best racers right now are all the guys who were good at freestyle back in the day.
"It's different, but it's a shame because freestyle at the Olympics would have been a pretty cool dream."