Whatever you might think about BJJ being watered down,
To be completely honest with you, I don't worry about it too much. When I was initially thinking about the phenomenon, back in the mid-90's, I was mostly noting how "grapppling" was suddenly being added to every school, dojo, dojang, kwoon, gas station, residence, warehouse, farmhouse, henhouse, outhouse and doghouse. I opined that the general level of grappling and groundfighting in the U.S. was being watered down and I used Helio's open letter as supporting evidence (perhaps wrongly).
It seemed a bit more relevant back then. Now, honestly, I kinda don't care. I'm bemused by people who think that "anti-grappling" defenses (or however they're being branded now) are worth anything, and I'm perfectly willing to tell them that if the subject comes up, but I don't usually go out looking to evangelize my opinion on it.
I do strongly believe that any such complaints from Helio were definitely due to his financial and ego motivations for running down the competition. (Even though the competition would have been members of his own family.) Helio and Rorion were at that time pushing the myth that Helio was the sole innovator who made BJJ the effective art that it is now.
That seems to be a strong possibility and I certainly won't argue against it. There seems to be a lot of evidence to support it. IMS, wasn't that the time period where there was a big split and conflict with the Machado's?
That said, the plain reading of Helio's open letter is complaining about the watering down of BJJ and it's hard to fault someone (me?) for thinking that it McDojo-ification might be happening in the BJJ community, or at the very least within the "ground grappling" community at large.
To be honest, I still sometimes see people teaching "ground fighting" who looks like they learned it from mixing together old tapes of Hulk Hogan and Ashida Kim.
Peace favor your sword,
Kirk