Personnally I find this option rather dangerous and with two clicks you can obtain the same effect (select all, mark as read) but in a more fool-proof manner.
I already clicked on the "mark all items as read" by accident and I presume I'm not the only one...
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I think inserting a confirmation dialog would be preferable to removing the option entirely, personally.
As a stop-gap, if you never use the feature, you can always edit view-menu.html and remove the link to it.