They are a good thing for the environment, full stop.
The loss of hydro with these smaller damns is not material. Their impact on hundreds of miles of habitat is. And for those who only want to think in terms of material wealth, there's real money in restoring salmon populations.
So please don't do the hackernews reflexive contrarian thing and be all "well look at those idiots don't they see we need every bit of green hydro power that exists?" because the real analysis being doing is years worth of sophisticated measurement and modeling. You haven't somehow outsmarted that with your off the cuff observation.
Edit:
I guess I can mention a bit more without too much risk to my friend's privacy. During the years he was working as a part of this we were on vacation together at one point, and we ended up pairing on some problems he was having getting his R model working with ArcGIS. The task he was working on was modeling the changes in large herbivore populations that would result from various changes to the rivers.
There are tons of these downstream effects that depend on the river. Losing the power generation is just one concern among 100s.
So yeah, they thought very deeply about the implications and tradeoffs here.