First, I don't agree that its a disaster for the C's. It makes the division tougher, but basically they were still where they were before. A step behind the top tier, but with a punchers chance.
As for the league, I think this is great for the league. They just expanded the top tier.
I think right now you have the following tiers (on paper):
Elite - LA, OKC, Miami
Close to Elite but with decent question-marks - Boston, SAS, LAC
Potential contenders with bigger questionmarks - Brooklyn, NYK
It makes for a deeper league at the top, which is a good thing.