If this news is accurate, then it does give pause for concern. Whilst I might enjoy a round of say N4Speed Underground, I likewise like to see some decent competition within the market.
The bigger question is Ubisoft has had an especially good critically-acclaimed run the past several months,(P.O.P. Sands of Time/Warrior Within, Splinter Cell/Pandora Tomorrow/Chaos Theory). Even if you subscribe to the thought it was a case of EA picking up the franchises rather than killing off a competitor, can you necessarily see the developers concerned willing to stay if quality becomes compromised in name of x,y,z game update?