Ironically, it's not the project itself that is the problem. It is the way it was done. It is causing masssive, massive problems internally within the WMF and frankly it's spilling over into the wider Wikipedia community. Can't speak for the other projects though, I don't know enough about them to say what the general feeling is around there.

It's not nice to be the only one here on HN pointing out that there are some absolutely massive problems going on at the WMF at the moment, but I'm an outsider who was once an insider and I still know enough influential people through Facebook and other mechanisms to see enough to know that there is a crisis happening right now within the WMF.

edit: I should note that, as an outsider who doesn't ever really want to be hugely involved in Wikipedia-related matters again (for various personal reasons not necessarily related to Wikipedia or the WMF), I don't really have any fear in stating what I see - nobody can really come back at me so I have no fear of any reprisals.