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10 months seems a little hastily on their end but they do what they do. id definitely try to run a purchase through a visa or mc at least once every 6 months. can u call them and say u have been an excellent customer and please re open my card. most bank would at least reconsider if u can back it up with score and payment history etc.
Chin up! You need to look at the bigger picture, if the card hasn't been used in that long of a period then it really wasn't serving much of a purpose so really it wasn't working for you it won't likely be missed.
It can effect your overall utilization because your toal credit limit has been reduced. The account can stay on your credit reports for up to 10 years so it won't hurt your AAoA. Now that the account has been closed what's your utilization?