I think the AI changes were good, as it fixed problems and made them less stupid, but the combination of the Engineers upgrades and the loadout changes of ships threw the difficulty completely overboard.
Tiny ships are surviving things that used to tear them apart in seconds and are able to take out medium/large ships very quickly. I run an A fitted Asp Explorer and had to run away from an Imperial Eagle.
Large ships are packing so much absurd firepower it's impossible to kill them unless you can somehow blindside them, which is very difficult with the new AI and impossible if they get the jump on you. I want to go back to my Cobra to see if it's even possible to outmaneuver them in a smaller ship, or if you just get destroyed before you can even boost passed them.
I haven't read too much on the update, but from what other people have said it sounds like -every- ship is using Engineers upgrades instead of -only- Elite/Dangerous ships. If so, changing that would solve a lot of the current issues with damage/survivability being far too high for most ships. After that.. the loadout changes should probably be adjusted. Why is every ship carrying a Particle Accelerator, Railgun, missiles and either a cannon/laser? They seem to prioritize PA's; I've almost never seen a ship post update without one. Couple that with the fact they have infinite ammo.. when ammo counts are already high, is just absurd. You can't outlast an equally fitted AI ship. That shouldn't be the case.
So, TLDR: AI change was good, loadout/upgrade change wasn't.
For me personally, I am never doing combat again until I have a ship built specifically for it; and even that's questionable.