In the process, Uber clearly behaved illegally and unethically towards its workers and government regulators. That's been known for a while. Could it have been different? Maybe, maybe not. Sometimes governments don't listen until they're forced to.
Now about the working conditions of cab drivers, honestly in many places they were already being screwed over by local oligopolies (for a prime example of this, see for example the NYC medallion auction scams which defrauded individual drivers of hundreds of thousands of dollars). In the Uber story, drivers got shuttled from one shitty situation to another probably just about as shitty.
Hopefully the new set of players in that space now abide by the local rules, and also the regulators learn from their failures and get on top of the industry without forgetting about their users too much.