You’re getting downvotes, but I think (correct me if I’m wrong) you meant something like the hash difficulty will adjust down if this is an extended downtime. So we would have fewer miners, easier hash difficulty and the same block rate. This would indeed be better for the environment, at least for the short term. This and the reduction in centralization could be argued as being “good” for Bitcoin.

... because it reduces the power China has over Bitcoin

... because it attracts new players to the mining game

... because it will make the argument that bitcoin is bad for the environment weaker

I agree, the "any news is good news" is a fun game to play.

It hurts short term. This means the fees for Bitcoin transactions increase.

If not by the old mining power coming back online, it will be solved either by the next difficulty change, after which the Bitcoin network will again operate at full speed but using less energy, or by market powers if there are miners standing by due to not being profitable, which they now may be due to fewer miners to share the rewards with.