That depends on one's perspective. Certainly the businesses seem to have suffered, but who in NYC really cares about street-level businesses? NYC is all about high-end residential real estate. Emptying that street of makes all those apartments slightly more desirable, slightly more expensive. That in turn has a net benefit to the city's bottom line. And I would not be surprised if there were more people employed in constructing new high-end apartment buildings that there are working street-level retail.

There is an old saying that nobody who "works" in NYC can afford to live in NYC. You need passive family/investment income to support living there. The new saying might be that nobody who lives in new your can afford to live there. It is a place for people rich enough to maintain residences in multiple cities, a place for luxury crashpads servicing weekend benders. Nobody rich enough to owns a NYC apartment actually spends much time in NYC.