PvE seems like a DLC feature to me (and hence should be included with EoD), but could have been marketed as a subscription instead, with the new edition including it for life. ie. Make it feel like renting a server. Even their backdown seems like a bad business move on their part.
The real problematic part, which they don't seem to be addressing (or are they?): the scavs-don't-target-you-at-distance thing is clearly over the top and pay to win, as is the invite-your-friends-to-a-live-match feature, unless it's PvE mode only and I misunderstood.
edit: it looks like it will be PvE only now.
What an absolute mess Tarkov is, I don't believe he didn't see the backlash. You would have to not play the game and not keep up with the community to be that ignorant. But last time I checked he doesn't play the game so maybe it's both.