Possibly. But it's good to check assumptions periodically, and I find the assumption that the taxi industry before uber was remotely efficient to be dubious. Very few industries merit protection from open competition (in fact, I can't think of one off the top of my head).

So far, as a consumer, I prefer uber (or lyft etc, experience is undifferentiated hence why I'm bearish on uber specifically) over literally every other transport-for-hire service I've ever used.

The contractor debate should be seen as a first step by the IRS (and soon enough, other countries' taxmen) to take more from an economy that is moving to being self employed at greater numbers (and in growing, valuable fields). Uber and everyone should fight this tooth and nail, both in courts and through lobbying. As it stands, there are strong legal arguments on both sides.

As to the ultimate fate of Uber: even if they win this, they will lose. Other competitors will steal their network effect and grow by competing on the spread between pay to company and pay to driver. In 6-10 years, self driving cars will replace human drivers, but margins will keep shrinking and competition will stay fierce. It will remain a huge industry in dollar terms, but not exceptional from a gross margin perspective.