Not sure how the problems can symbolise the demise of British industry, given that Vestel are located in Turkey

. That said, Cabot in the UK were maybe involved in breaking the software on this occasion. I am not privy to the changelogs, but the most obvious differences beween v4.6 and v3.4 is that support for Target Region Descriptor, Trailer Booking and Recommendations was added, as now required for Freeview+ certification.
Most of the problems have now been fixed in v5.3, and some users have experienced no problems with it feeling more like v3.4 again. However, the infamous "Service is not running" problem is still there, and due to its seemingly random nature it is proving difficult to pinpoint in order to provide a reproducable test case to Vestel so they can fix it.