Amsterdam is a wonderful city for so many reasons. The intellectual, creative, and entrepreneurial capacity of its citizens and visitors has been apparent for centuries. This particular project won't influence Amsterdam's reputation much one way or the other.
My observation is that there is very little response from the slashdot community on this particular topic. That might be an indication that many slashdotters have not had the opportunity to go there.
It is true that back when I went, last millennium, marijuana was not legal in the US and the Bulldog Cafe's world renown was a great enticement to the land of orange, while in Europe. That reputation was never one of great intellectual value, and perhaps neither is this story. Nevertheless, I encourage every geek or non geek to make it a priority to burn some jet fuel and get your ass over to Europe and spend a few weeks with a first class Euro Rail train pass. Its way better for you and your intellect than a new car, and you will be a better, smarter person as a result of the experience.
If you can't manage to go at this time then try to appreciate the geek perspective of dutch sensibility in Teller's film "Tim's Vermeer"
Amsterdam is a very smart city, and you should see it and think about it if you can!