Obviously the AH patch has made everyone pretty angry, myself included. I was crafting a Vog Cub Cap and a Divine Avenger for a guildie, something that I've done several dozen times. We've all seen this happen before: good games gone bad with a single bad patch, the resulting outcry of the community, and lack of response from the developers.
However, the developers at OOO have been fairly responsive to our feedback in the past. They have kept us up to date (most of the time) on changes and have addressed community concerns fairly well. This gives me some hope. So what happens now? There are three scenarios: the patch gets rolled back, it doesn't get rolled back, or there is some sort of compromise. Here are my thoughts as to what will likely happen in both cases.
WARNING: This is all speculation based on my past experiences of playing over two dozen MMOGs and MMORPGs over the past decade. If you're going to get mad, question my "credibility" (ad hominem), or make some half-baked response, don't bother because I won't respond to it.
The patch doesn't get rolled back
The amount of angry people isn't trivial. Very outspoken community members (Magnus, etc.) have started a boycott, which in all likelihood will succeed in getting most of the regular players to no longer play. Spiral Knights will become a skeleton of what it once was, and turn into a game with a community, at best, indifferent, and at worst, horrible and unresponsive. It will be a community of primarily people who don't really have a great interest in the game and will quit after X months. Yes, they might purchase CE, but it will be far less than at a point before the patch. This happened to several other games, but the one that stands out most in my mind is Star Wars: Galaxies.
But, life will go on for OOO. They will probably continue making an acceptable profit margin from the CE transactions, and they will roll out planned patches albeit without much support and/or response from the community. If they're lucky, the will be able to rebuild a community that will be good, but it will probably never be as good as the community that consisted of beta players and of people who cared a lot about what happens to Spiral Knights from the very beginning.
If, for some reason, the boycott fails and people get past their grumbling and continue to play Spiral Knights, OOO will retain (most) of the original community and will still listen to what valuable feedback they provide. And perhaps, they will roll out patches that will make our community very happy and maybe even make up for the patch that had made everyone angry.
Economically, the CE-Crown exchange rate will get even higher due to the increased crafting costs, and people who choose not to buy CE (i.e. play SK using only Mist Energy) will need to play for many days before they are able to face Vanaduke. Whether this is a good or bad thing, time will only tell; but personally I think it may turn out good because people won't "burn out" the game in a short period of time.
The patch gets rolled back
Everyone will go back to what they were doing, OOO might feel a bit slighted but ultimately (and hopefully) understands that this will make everyone happy again. They'll continue to listen to the community and roll in patches, but the patches will probably be more on the "safe" side to avoid insulting to the community and risk losing more valuable players. This doesn't mean that they won't roll out exciting new content, but the process will become a greater exchange of community feedback and releasing bits of content at a time.
There is some sort of compromise
The compromise, if there is any, will probably be that crafting costs will be reduced or reverted to original levels, but items becoming soulbound on equip will remain in place. The crafting market will still be shot, but I think that everyone would be a lot less angry if this were to happen. I don't see OOO ever taking back the soulbound part of the patch.
the only acceptable compromise is removing 4-5* bind on craft.
they need to save these dangerous ideas for 6+* gear, where it will work without an outcry.
many players want to pay $ for gear, and this patch will only encourage the soon to be black market of account selling, in addition to wrecking the free to play and crafting community.
+1 for SWG reference btw, I beat you to it about 10 minutes ago though in the feedback thread (lolol)