Overall I would say it was a negative development, but in reality it's more complicated than that.
Early 2020 Coco was a powerful force of unity for hololive.
Asacoco 1.0 was exactly what hololive needed : a genuinely funny show that brings the girls together, increases cohesion, and brings hololive news to fans in an easily digestible 20 minute format.
Coco greatly built on and expanded the hololive brand, helped spread the image of hololive as a warm family instead of just individual performers, and even acted a bit like a therapist for some girls.
HoloMyth stated several times that without her HoloEN may have never even existed, and she was a great source of inspiration for them.
Without her hololive would not be what it is today.
However, the very personality that made her so popular was also her downfall.
She was obsessed with being creatively uncouth, pushing the line, exploring boundaries of what is acceptable content, which led her to be too way too relaxed with controversial content.
When screening the contents of asacoco that was sent to her by her editors, she allowed some stuff to go through that rubbed the wrong people the wrong way in management (remember Kanata hanging cm yab?)
Asacoco 2.0 and 3.0 were basically neutered versions of 1.0
Chinese rage was simply the nail in the coffin, as it gave management the perfect excuse to neuter Coco once and for all.
After that Coco then became increasingly stressed out, sad, bitter, and even jealous (as she admitted herself in a zatsudan after her graduation announcement).
When she realized that she was turning into a shadow of her old self she decided to put an end to it rather than drag it on for the sake of money (she later revealed in a member post that she could have stayed for money but refused).
What she failed to realize is that the adult hololive, the erolive era, was basically over when youtube started demonetizing holo channels, because management didn't like their income being threatened at all.
She failed to adapt to family-friendly hololive, which is why she cited "creative differences" as the major reason for her departure.
Personally I don't like Kson at all, especially after Coco's graduation.
I know it's not her fault, but I feel like her positivity, which was crucial to making her vulgarity likable, is kind of gone.
She was happy vulgar, now she's bitter vulgar and it makes all the difference. It's basically the difference between someone like Marine (playful) and Veibae (thot).
People can smell bitterness and misandry, even faint. Regardless, I wish her well and I hope she can find happiness where she is now.