So, this seems like a step in the right direction from PADI. Instead of having their head in the sand (I'm trying to be nice), they're at least admitting they see a problem. That's a big deal. Recognizing the problem is half the battle. However, THEY should have stepped up to do things. If nothing else, pulled certs claiming the guides acted against PADI safety standards. However, I REALLY don't want any government agency to get involved in diving. It's one of the few hobbies I have left that they haven't started to ruin. If this letter sparks ANY government to start stepping in and regulating diving, then this is clearly a step in the wrong direction.
Having said that, posting when and where we can will help raise awareness. Letting resorts know what shops have dangerous policies will (well, could) keep the resorts from recommending the "bad" shops to their clients. This would be the Capitalist way of saying we disagree. I know few divers read here religiously, but if we post enough bad reviews and spread the word enough it could cut down on the divers flocking to those shops. Anywhere that these really bad shops exist, there are 30 other shops within spitting distance.
Having said that, my faith has been at least partially restored in resort location dive shops. ProDive in Mexico was very specific on requiring AOW for a wreck dive and couldn't be convinced otherwise. After a diver (Rescue cert) had an awful dive on the wreck and proved himself to be much less skilled than his certs showed, they put him on easy, shallow dives and had an instructor work with him on improving his diving at no extra cost.