One issue is that this is the second major Parity hack in 3 months.
Secondly, while this incident has nothing to do with the actual ETH chain, it's quite damaging to the overall ecosystem as the entire notion of "code is law" is now put into question.
If even one of the founders of ETH, Gavin Wood, can't code a secure a smart contract, what hope is there for all the upcoming developers?
EXACTLY! Parity is screwed...