I think it's catastrophic.
Just because some people don't value their own historical content doesn't mean that attitude should be inflicted on everyone else.
The amount of cultural, historic value in old tweets is absolutely immense. They tell stories that are both national or global in scale, as well as stories that are much more personal.
My own Twitter history stretches back over 16 years. It captures my career achievements, online relationships I've formed, things I've learned, stuff I've published. I have a backup, thankfully, because I clearly can't trust Twitter to treat it with the respect that I think it deserves.
If Twitter had been documented as ephemeral from day one this would be a very different conversation. The problem here is that millions of people have entrusted their content to it (over the past 17+ years) on the loose understanding that it wouldn't be thrown away with 30 days notice.