According to a link in the article the government lost over $9 Billion. I live in Metro-Detroit, saw plant closings, saw waves of dealerships close, watched whole car brands die, got my hours cut and watched delayed work hurt a lot of people around here.
Just because GM and Chrysler go into bankruptcy sans the gov doesn't mean all those jobs disappear. Yes, GM and Chrysler would take a cut (which happened anyway) but I think they'd also get reorganized better at the very least.
From what I've heard the reorganization that took place was not nearly enough. Chrysler has a mandate on the minimum number of workers needed for some contracts. This leads to situations where Chrysler is paying for 4 people so 1 person can put in half a day at a 3rd party supplier. I have stories for days.
The real tragedy in all this is a new better company could've started in Detroit. Instead, due to Zombie GM and Chrysler continuing to dominate the market, all the automotive engineering talent is slowly migrating to Silicon Valley.