I don't play Activision-Blizzard games so I couldn't care less from that perspective. Don't like Microsoft's lies and dishonest arguments though so I really hope the deal crashes and burns.I don't think Sony has made any absolutely terrible decisions.
Actually using my brain and predicting what would be best for the industry? No clue. If the deal is denied, what situation will Activision Blizzard be in? Will a worse company swoop them up?
You have more faith in Sony than I do. They're great at making games but it feels like the business people this gen have no clue how to compete with Microsoft.
They've got a great console, they've got a strong stable of IPs.
They have a few weaknesses.
Their indie program doesn't seem quite as strong as the early PS4 era. (at least it doesn't feel like they're pushing indies quite as much as they used to).
A pretty notable decline in the amount of publishing deals with third party studios.
But I think these are things they can work on.