It was really bad.
AFAIK there is no evidence that CVE-2008-0166 was done deliberately, whereas with the xz backdoor, there seems to be lots of signs of deliberate intent.
Debian is also 100% at fault here and I hope this slap in the face makes them reconsider their poor security practices. Amateur package maintainers should not be overstepping their job (packaging) and enabling disastrous vulnerabilities in security-critical software.
The creation of this backdoor did not take place in a vacuum. Can you imagine the same person trying to introduce build changes and binary test cases into openssh? This backdoor was crafted in this particular way _specifically_ to exploit the fact that sshd in distributions such as Debian is being indirectly linked with lzma.
At least there is no lack of amateur enthusiasts telling people how they are wrong. :)