Danny Ayers says "Sure there will be inconveniences in a transition period, but that is often a side effect of progress."
It seems to be a poor choice of timing to start such a transition. Maybe this is progress, maybe not. Time will tell how significant the progress is relative to the chaos.
Many people are just beginning to be familiar with blogs and RSS. The RSS/Echo affair may complicate whatever confidence they otherwise would have had investing in RSS for applications they don't get free. For example, if someone is building an RSS feed for some internal source of data, do they stop and wait for Echo? You may feel there is a right answer to this question. Someone else may be uncomfortable enough to stop development.
Time cannot tell whether there would have been a better way to go about this. Kind of funny all the fuss. Fairly innocuous geek thrash sometimes has real monitary damage. We may never know some of the damage that's been done, even though the end result may appear generally to be a success.