From my estimation, they are going to kill King Street, it feels deserted and the bars and restaurants are very quiet during weeknight evenings. These changes were made 24 hours a day, not just during rush hour. It makes driving complicated and has caused much more congestion on the connecting streets so I would like to know the impact on other transit routes that cross King Street.
The article mentioned restaurant sales are up 0.3% vs 3.8% in the rest of the city, but didn't mention that employers were hit with a 22% increase in minimum wage this year ($11.40/hr to $14) and this should be reflected by higher prices to recover these costs.
There is no reason for this to cause businesses to go under, but commercial leases are long term and difficult to exit so the real impact won't be obvious for years if this does cause them to shut down or relocate.