Seriously, it's amazing how fast we can go from "man, scientific research sure is a mess, wtf are all these people doing anyway?" to "How dare you mess with the status quo?!"
It's worth remembering that American academic science has for years been training far more grad students than they could ever hope to eventually give tenure to, or even place in tenure track jobs (only to be denied at the last step). Instead, PhD graduates spend years working in the precariat of "soft-funding". The result is a desperate publish-or-perish culture that leads to all the ills we see so often on the HN front page: unreproducible results, p-hacking, etc.
This entire toxic environment is created and sustained by universities that demand that their faculty have independently funded research programs, that put a third or more of their grant funds into the university general fund via indirect fees.
This is the status quo that is being disrupted. It is pretty reasonable to assume that the majority of young researchers whose careers are getting derailed were not going to make tenure or publish anything anyway, and they have in fact been done a favor.
The counterargument to this is that we should deliberately fund many researchers who we know will never actually produce anything useful because that's how we find the few actual geniuses who will produce useful things. There is something to this argument, but we should be clear up front to the students about their true prospects.