And, as I write this, it looks like the Brexit has a very high chance of winning the vote.
Will this cause problems. Yes.
Will it solve other problems. Yes.
Were there other ways to better deal with this. Yes, but the EU leadership thought no real action was needed since this was yet another bluff. Now they'll have to pay attention to grievances of member nations and take real action the next time a country either threatens to leave or reaches the edge of being ejected.
Overall, I think the Brexit will end up benefiting both the UK and the EU. The better parts of the relationship can be restored, one agreement at a time. The bad parts - like scumbag binary brokers getting FCA passports, can be permanently ended.