I think you and @Screak42 hit the nail on the head.
There was never going to be a mass exodus, not without an established competitor (as Reddit was to Digg back in the day).
Trust has been broken. That's like a boat that now has a tiny hole in it- it may not sink now, but that doesn't mean it's not sinking.
That said- I don't think there will be a mass move. I think the more passionate old school people will migrate away, which will leave less content for the newer folks. The site will certainly get a lot less interesting. And this will hurt them in the long run. But like most mismanagement, it'll look good for the next quarter or two.