It doesn't change anything about Uber's flawed business model. They've been subsidizing both sides of the coin so far: subsidized ride fairs to ensure there's demand and somewhat inflated compensation for their drivers to ensure there's supply. This cannot scale and Uber knows this.

They are now tightening the screw on both ends, trying to raise fares as well as pushing down driver's compensations. Since Uber has a not insignificant corporate overhead it means rides will be more expensive than those of yellow cabs since those have much a lower overhead. This will instantly reduce their pie of the market to very little. Uber is a dying business and no driver should stake their fate on its survival.

>Surely you understand though that some people, through no fault of their own, aren't in a position to be making those changes? Should they be left out to dry?

That's not Uber's problem to solve even though they so far were allowed to thanks to ill-informed venture capitals. Since VC has finally dried up, Uber will go out of business and that will force the drivers to look for something else.