The shouting's evidently far from over on this, but it's going to shake up a lot of things, and spell the deathknell for a lot of patents that should arguably never have been granted in the first place. Hopefully it will also extend to some of the more stupid "business methods" patents.
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A more balanced expectation would be to follow Federal Circuit and Supreme Court precedents to modestly scale back some of the vague, broad and obvious patent claims. His report does NOT represent the position of the USPTO as it claims to, but distorts it by stretching to an extreme that was never intended.
Lawyers study the use of words. This guy uses words very cleverly, presenting a doom and gloom scenario of no patents on software or business methods in order to show the world how bad it would be if we got rid of them. Like you, I think they should be tossed altogether, but this is not the announcement (or decision) we have been looking for, move along.