No, GoLite hasn't lost their mind. In a sense, you might even argue that they found it.
As I've written before, when GoLite first came out we couldn't sell their product for beans in a retail environment. The people who would buy the minimalistic, frameless sil sacks were far, far on the fringe of backpacking. Most people wouldn't give the packs so much as a glance; those who did take notice usually laughed, almost, at the unfinished look and flimsiness of the products. While there were (and are) some people concerned primarily with ounces, most people are looking for more comfort, durability, and quality finish.
The weight gains in GoLite packs do indeed bring the line more mainstream. But the packs are still not mainstream packs. Truly "mainstream" backpacks still start out around 4 pounds or more. Incidentally, the Jam has the same basic "frame" as a Vapor Trail; the VT has a wafer-thin sheet of plastic, the Jam has stiff pieces of foam in the backpanel. Having played with both, I find the support between the two roughly equivalent... and I don't think most people would consider Granite Gear a mainstream company, per se. Mainstream is more the realm of Osprey, Gregory, Arc'Teryx, and so forth. Smaller companies like GoLite and Granite Gear can be found in better shops or shops with more UL interest.
Some of the GoLite product line changes just make sense. Fer example, the biggest "beef" w/their packs has been the miniscule hipbelt pads, so they're improving the hipbelt. "Feature creep" that we've seen on many of the packs just makes them more accessible and "realistic" for more end-users. I am surprised at the weight of the double-wall Edens, but they're still relatively light as compared to the rest of the market.
As has been discussed in another "GoLite has gone to the dark side" thread, one could argue that they're actually bringing the mainstream to the light side. Major gear manufacturers have been striving to cut weight of their products... you might even argue that the Exos only came about because of the influence of GoLite on mainstream manufacturers.
All that said, they do need to keep an eye on their background. If they start broaching the 4# pack range and getting into big-ticket ($350-ish) packs, then they've gone too far. You can't take a company seriously if they're known (and named!) for lightweight product, but their product weighs about the same as everything else on the market. I don't think the company is there... I just hope they don't get there.