The takeover and renaming of a third party extension and subsequent updates which released previously paid features was a huge shock.

Add on top of that Matt claimed that WordPress.org is his personal website, so neither it nor the official plug-in repository are under the control of the foundation (unless he's walked back that claim since I last paid attention).

There's still going to be plenty of users, but a lot of trust has been lost, and a lot of users are now looking for alternatives.