I was pretty upset about this news at first, but I think it’s going to be a good thing in the end. It’s not going to affect everyone, just websites that are over optimized. In terms of what over optimized means, I think it means websites that are buying irrelevant and low quality links, as well as websites with too much on-site optimization e.g. Unnatural keyword density.
Fingers crossed this will be a good change that will only affect black hat SEO techniques.