Yeah I don't think people are saying it's an absolute certainty, but stories like this increase anxieties about the internal machinations of that organization and what that could, potentially, lead to. Might it be all good? Sure. But the fears that it won't be aren't baseless. Nadia's point about ski cross is really pertinent here and because we don't necessarily pay very close attention to that side of the sport it's easy not to draw the parallels or even realize the problems that exist there.
As for whether people will stop being involved if stuff goes south, there are a few things with that. First, it'd likely be a game of inches. You'd have to be an idiot to resign in protest from your chance to ski for your country in the Olympics because of the size of logo that's allowed to be on your goggs, I think everyone would agree with that. But if it's one little thing, then another, then another, that's sort of a different situation than "FIS came in, changed everything and fucked up slopestyle in one fell swoop", it's a lot more insidious and people are more likely to accept the gradual change for the worse and be able to justify that. Human nature.
The other thing is, even in the worst case scenario where things go to hell and FIS ends up micromanaging everything and essentially removing the "free" from freeskiing, the olympics are a massive, massive boost for the sport. In the short term, the cash injection that will result will inevtiably trickle down into pockets like yours, and that's arguably the best part about this. People who have been doing this forever and have eeked out a living, or made it work by swinging a hammer in the summer months, whatever you have to do, might get into a position where they can be well supported and comfortable by skiing. That was already increasingly the case over the years but the Olympics is a great leap forward in that area rather than the gradual expansion that's been happening to date. I couldn't blame anyone, no matter what restrictive, stupid guidelines FIS put in place, for just putting up with them and going forward when that's where all the attention, and consequently the marketing dollars, are headed. Everybody's gotta eat. And even if a few athletes refuse to put up with the restrictions and rules, there will be other people who are willing to and will step in to fill those gaps. It's not like there's going to be a sport-wide athlete strike.
Anyway reasonable people are going to differ on this issue a lot, and people have different stakes in the game which will affect their perspectives. What it all comes down to is we'll pretty much have to wait and see because there's no turning back now. Throughout that process, though, it's crucial to keep this shit in mind, so that the same bad things that have happened to others don't happen again.