I think you oversimplify this by a lot. No, Apple reputation won't be severely damaged by this move immediately. But I do believe that those "nerdy guys" did a lot to push the Apple brand, and a big part of that push was due to security and privacy. Until recently Apple was always the "privacy brand" and it was hard to argue against it without going the full FSF route of argumentation.

This is no longer the case and I'm sure this will deal some damage over time, even if it only starts with the "screeching voices" of the (nerdy) minority. Maybe not directly to their revenue, but certainly to their reputation. Nothing wrong with shaving off a bit of the prestige of working at Apple ;)

> I don't want to be that guy, but for this job there were lining up 300 more people.

This is the case for many jobs that don't come close to the holy "working at Apple".