I mean, remember the salmonella tomato scare in 2008? Restaurants around the country stopped putting tomatoes on their food, and grocery stores pulled all tomatoes from the shelves, until the issue was isolated and resolved.
So while I do think it's quite the overreaction to tell everyone to stop using any and all vaping products, particularly people who are continuing to vape juices that have been used for years without issue, it's an understandable overreaction.
In the end, they are going to find the issue, and it won't have anything to do with traditional e-cig alternatives to tobacco. But I suspect there will be legislative backlash that will be vastly disproportionate to the issue. They will punish innocent retailers, make e-cigs outrageously expensive by over-regulation, and discourage a large number of people from a product that really is substantially safer than the tobacco they are leaving behind.