It really is. Time for both sides to look into the mirror and do some serious self reflection. This quote does actually worry me, because he is right:
Unfortunately, I believe bitcoin development has lost touch with large-scale rollout necessities over the past year or so.
[...]
That's why I'm concerned when I'm looking at the features of 0.12. [...] What I see is instead engineering for the sake of engineering.
The question of "who's the customer?" seems to have gotten lost in the process.
That's the money quote, IMHO. Blockstream appears to want to infect the world with a disease so they can sell the cure. I know that's uncharitable, but there is no other plausible explanation for their obstinacy other than a complete lack of business acumen.