Uber is suffering from a lack of credibility built up by by years of mild-to-moderate asshole behavior.

Nothing they've done so far, in isolation, are IMO worth the pitchforks being handed out in tech and mainstream consciousness right now, but taken as a whole it's pretty easy to see why people aren't willing to cut Uber any slack or give them the benefit of the doubt.

So yeah, this thing by itself isn't "that bad", but it's one piece of a large puzzle of Uber's misbehavior.