I wouldn't call them incompetent, just blinded by their vision. What Niantic's CEO visions is people diligently searching around for nearby Pokemon, discovering either more Pokemon or something/places in the real world they've never knew was their before. But in reality the lack of direction makes people frustrated when they see a Pokemon they want and are made to wonder around, and by the time they find the Pokemon (if they do) they could be tired, hungry/thirsty, and maybe even short of in-game supplies if they caught other Pokemon on their way to finding the Pokemon they actually want. It's that ever popular conflict between ideals & truth, Niantic's vision just isn't supported by the truth.
And now that they made wild catches more difficult having enough supplies for when you get to the Pokemon you want is even more crucial.
I'm wondering if this isn't also out of spite on Niantic's part. Someone made their game easier to play so now they're somewhat lashing out.
"WE think you should be ~exploring~ to get your Pokemon!"
*Closes down Pokemon Radar sites*
"Oh, you think some Pokemon are too powerful? Fine!"
*Nerfs all the popular Pokemon*
""
"You think catching Pokemon is too easy. You asked for it!" *Makes catches harder*
"There! Maybe next time you'll think about giving us legitimate complaints to make the game more enjoyable!"
Not saying eventually these changes shouldn't be made, but I think they might have done these changes early without the system needed to support them to back them up.
EDIT: The honeymoon is officially over. I hope satisfying your ego instead of listening to players was worth it Niantic.