I don't think they are. If Ledger is good at one thing, that's marketing and advertising their products and services. They did a lousy job with the PR for Ledger Recover the first time. I think they will hang back, gather their thoughts, and try again once the storm passes.

We are forgetting that many ideas shared by members of this forum is not what the regular crypto user thinks. The average person isn't going to run their own node, stay clear of centralized exchanges, never submit KYC, or worry too much about privacy-invasive software and services. I don't think they will see the dangers in sharing their seeds with multiple online partners either if you package it and sell it to them in a nice wrapping.

Ledger will probably lose a percentage of their current userbase because people have found out their hardware wallets aren't as safe as they trusted Ledger they would be. In the long run, they might make up for it with new users, like the millions of mothers  looking to purchase hardware wallets where there is a system in place to correct their mistakes.