Does TechCrunch actually have any documented cases where Nest has connected to a customer's thermostat and modified the settings on it? Or are they simply talking in the realm of "we think they can probably do this"?
Increasing energy consumption is a real problem, both in terms of environmental impact and in terms of the power grid itself. A solution that mitigates these problems using attractive consumer technology without requiring significant lifestyle adjustments on the part of those consumers is admirably pragmatic and, in my view, most welcome.
https://nest.com/energy-partners/austin-energy/
http://kut.org/post/meet-answer-texas-air-conditioning-issue...
Of course, these (presumably price-sensitive) consumers will have to buy a Nest to do so.
Nest is an interesting entrant into the market because they can come to a utility and say "we already have X of your customers hooked up, you don't have to pay for anything besides the service!" One potential downside is that it is likely the utility will want more of their customers to participate in their demand response program than the number of Nest-owners. Despite its success, the Nest is still a luxury item, and these programs work best at scale. This could make it awkward for the utility to work with another provider, unless Nest is open to partnerships (which they may well be). It's a great play for Nest though, because now they have utilities aligned with their goal of selling more of their thermostats, which is probably really good for marketing.
The only major change in this instance is Google/Nest making money on it instead of just the utility/customer.