Problem is there's no knowing, in any case, what resolution would have been reached had the activists not intervened. Maybe a turnaround would have been around the corner, but having the activist there scared off someone? Or no activist -> management/government continues being profligate.

Main downside to a world of activists is you get guys who, like at poker, can see that they can intimidate others, perhaps from previous reputation. You could easily make a game theoretical scenario where once you've won a few rounds, it makes sense to do a few extortions as well.

Main downside of not having them is more obvious. Nobody points out the flaws of the current leadership.