Depending on what Google has to say about Pixel & Gemini in August, I think it would have been much more than grumbling. Apple is in a damned if they do damned if they don't situation. Under the surface of liquid glass, there really isn't even anything new coming unless they have some hardware limited features planned for the iPhone 17 launch.
It's clear this "redesign" was as you said, a panic project to cover for not delivering on AI, again for a second year and having nothing to show for WWDC. Just coming out with "we fixed some bugs" would cause a PR shitstorm. Even more so if Google gets any further ahead integrating Gemini into Pixel w/ personal context like what Apple wanted to achieve with Siri/AI, plus their own redesign (Material 3 Expressive, which is actually looking really nice IMO).
> This seems more like a seismic negative event, with a lot of criticism from all quarters.
Except from normal users/non enthusiasts. My kids and her friends all installed the dev beta and are absolutely enamored with liquid glass and think it's the coolest thing ever. Mind you, these are generations of folks that weren't around for Vista/7 Aero, etc and are now obsessed with that era from a fashion and design POV. "Fruitigier aero aesthetic" and all that. These are also people that would never switch platforms no matter what Apple does because of iMessage and social status/social pressure, so Apple is in no danger of losing any marketshare over this unless Google/Android somehow becomes "cool" again and can generate enough social pressure amongst the youth.