And the dumb thing is that if they had listened to the engineers who were telling them the customer base was going to freak out at this, the company could have avoided large parts of the drama, since a few of their fixes were not even really a change in plan, so much as better more clear wording.
The big drama causes
1. People assuming unity was going to add additional telemetry to track installs. (Reality: Unity seemed to always be planning on using App store numbers and the numbers from any opt-in unity services as the basis of their model). This one was a complete communication failure by unity.
2. Announcing a new payment model never before used by the industry. This alone (without looking at the details) is not a huge deal, but it makes people nervous.
3. This metric is hard to measure, and unity's initial announcement was basically that they would be estimating it in their sole discretion, which makes people uncomfortable. Their fix was to allow self reporting the data, which must be based on something that reliably approximates the revised install count definition.
4. Unclear definition of install was used. What they eventually settled on: once per unique end user per distribution platform (e.g. app store), was pretty much what Unity was going for anyway, but the initial announcement royally messed up here.
5. The metric was abusable, and there was apparently no cap to it. This was honestly one of the biggest issues. This got fixed by adding the 2.5% revenue share cap.
6. Trying to make this apply retroactively to previously published applications. This was the other biggest issue. This was especially bad because only a few years ago the company had another smaller scandal, and promised to allow people to keep using the terms of service of each version as it was when people downloaded it. Indeed, for a while this was explicitly part of the terms, and people who used those versions probably could get a court to side with them.
If they had listened to their engineers, I think they could have fixed/avoided 1, 4, and 6. Numbers 3 and 5 may have remained, still causing huge outcry, and eventually getting fixed, but at least if number 6 were addressed before initial announcement, it would not have been a loss-of-trust issue so much as a: you are a moron for proposing this without the needed backstop, and requiring companies to blindly trust your estimations.