My thoughts are these:
This will probably turn out to be good for me personally. I've long said that Covenant/Seagull would vastly improve when they stopped being a mom-and-pop, family-owned kind of operation. Marketing will likely improve (due in no small part to an increased budget and better connections). I'll probably get my books on more shelves at more stores. (Of course, this all assumes that DB/Seagull won't streamline the operation and axe half the authors, which is a very real possibility.)
But I think that, as good as it could be for me or Matthew, it won't be good for LDS fiction. The biggest problem in the market has always been publisher-controlled retailers. If you're from a small publisher, then you had a terrible time getting your books sold. Up until yesterday, there were only two companies who could properly market and sell their books--and now there's only one. With only one company calling the shots, and controlling 80% of LDS bookstores, growth of the LDS fiction genre is going to be severely hampered. Monopolies are good for the company in control, but lack of competition is devastating to the consumer.
(And, if the longstanding problem has been a lack of an independent retailer, the huge Seagull/DB conglomerate has now moved from two 800 lb gorrillas into one 1600 lb King Kong. With 60+ stores now, it's only that much harder to compete with.)