I really dont think the game is going to crash and burn now. 80% of the playerbase is PVE. But yes, this probably killed off PVP. I canceled yesterday.
Biggest problem isn't the mess up in itself, it's how they handled it afterwards.
1) If someone can grind 25-30 valor ranks in one day, obviously this is broken and should be considered an exploit. Roll back was the only option. Bioware is letting ppl get away with this, which in itself is a reason for any competative player to cancel.
2) My main reason for cancelling is how they handled the flow of information yesteday. They had a BIG base of dedicated (and most of all) concerned players, begging for information and empathic answers. We got political bs.
3) Obviously the solution sucks donkey. If you think rep-players should cut their losses cos they were killed alot. Like stated above. 25-30 valor ranks in one day was not intended by devs, and is therefor not republic players fault, but the developers.