It is bad. The "right thing" to do would have been to get the license deals in place before announcing the hardware would be discontinued. Now, who's going to do serious development for the Touchpad? There is a good chance webOS never gets licenses or is licensed and new products are released years from now. Even if it gets licensed tomorrow, I wouldn't expect another device for 12-18 months. No one is going to develop. No Evernote app. No Netflix. No Google+ App.
Users are going to stop investing in apps for a while too. I wouldn't expect many small developers to start or invest either.
Maybe you don't need some of these things. You can use the web. I wouldn't expect any updates for Flash. Don't expect pages to support the Touchpad user agent.