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I do not know what Seattle is going to do, but usually they only close the street for motorized through traffic.

If, say, you were to place bollards in the middle of a block, every home will still be reachable by car. But as only residential traffic uses the road, the volume is greatly reduced, making it possible to dedicate space for pedestrians and cyclists. Additionally, the bollards will still allow these to pass, so it can be a through road for cyclists.

So, if anything, it is a net positive for the residents.

Residential traffic and related activities are unaffected.

As the article says, “no through traffic”, which does not prohibit reasonable cause to visit and park. It does, however, prohibit use of said road for Waze shortcut routing. I expect to see widespread adoption of “no thru traffic” postings in residential neighborhoods in the next five years to force Waze to route honorably.