They have made the right moves after this, but it was their second massive breach of trust after the Improbable debacle.
The people invested in the Unity ecosystem will stay, but Unity drove a lot of people to Godot and Unreal. Unity now occupies a weird space where it's more expensive and harder to use than Godot, but not as powerful as Unreal.
As someone who has taught middle schoolers game development, Godot will absolutely replace Unity for students not only due to its price and licensing, but the ease of getting it deployed on a fleet of machines without even requiring a separate IDE.
IMHO the Improbable 'debacle' was solely due to the Improbable CEO coming up with new use cases outside the scope and spirit of the Unity license. I'm no fan of Improbable (and history has proven my opinion accurate) and they were clearly abusing Unity's license which wasn't intended to be free for companies allegedly valued in the billions of dollars. Unity gave them more than a year and they refused to pay for a license.
Has Improbable completely abandoned the game market now? Their website reads like a crypto venture fund and their CTO and CCO left last year.
The Switch support is free and community developed. For Xbox/PlayStation W4 has a plugin module for about $800/year, that's less than half the cost of a single Unity Pro seat.
It's more the breach of trust and how systemically rotten the entire company must have been to make a decision like that. I don't really buy that one guy could be the cause, and it also appears to be the CEO's job to hit the eject button when the company needs a scapegoat. The board of directors decided that the president of EA should run unity, and I think they're all still around.