I think there will be some consolidation but LP's are not going away anytime soon. This just sets them back a bit if they had any plans for med patients to keep them afloat until recreational/legalization comes into effect. It will be interesting to see as the one's with shaky financing/support will be looking to cut their losses/sell. For the larger one's with longer term goals in the recreational market. this will simply be a pain in the ass and they may shave some expenses short-term, but they won't go away. The med market is miniscule in comparison to recreational, if any of them invested strictly to rely on the medical market, they were bound to fail eventually or be relegated to a small market.
Also consider that if the medical market becomes fully legal and done right, insurance companies will eventually cover MJ meds. At that point, many potential home growers just won't bother. Only hard core growers will continue growing their own and we'll be right back to this point.
As much as I don't like what most of them represent, they do provide a service right now to those who cannot, will not, or simply don't want to grow it themselves, and have no other options (not everyone is comfortable buying on the street or through some hookup). In that sense we don't want them to fail as many patients would be left with no options e.g. new patients without a BM hook-up etc. So lets gloat and cheer a bit because this was a win for the little guy, patient rights, and a fuck-you-asshole to Harper, but lets not get carried away, patients need meds and not all patients will grow or even trust a DG if that program comes back.