that sounds a little better, but IMO there should be a more harsh consequence for hitting the wrong buttons. but then that would really seem like a QTE, and that's partly why I think they may have changed things because of the backlash
From my normal expectations of games i agree with you, there should be more of a consequence. But hearing their explanation I think they achieved their goals perfectly.
The thing people don't like about QTE's is that they take you out of the action. You fail one and you get a loading screen, or your character just stops In his tracks. This can lead to frustration, and for a game that's trying to provide a cinematic experience, it can really mess up the immersion if you have to keep trying over and over again to get a button prompt correct.
This way you stay immersed in the action, yet you still have to be mindful of your button presses or you will not survive.