I used to initially have the same thoughts -- seemed more like a crisis of a vision.
I think as time's passed since though the plan has "aged" nicely, at least from my perspective. I think Meta's much better positioned for success than they were upon the first (abysmal) announcement.
Regardless of how drastic or desperate the move was, I think it's built a much longer runway for them to build and compete on then what they had previously.
Ultimately tho: hoping these companies all die off lol shit's gettin dystopian af