Here is my take on the situation as it stands thus far. I do not believe Midgardsormr, out of blind rage, severed or bound our link to Hydaelyn. There had to be a more outstanding reason as he said he remembered the covenant. Also it is doubtful he'd be following us around if he wasn't watching over us in some manner. Possibly Hydaelyn is too weak to protect us anymore? Or it may be that we needed the blessing out of the way in order to deal with the Ascians as a whole, as it prevented some from even taking form in Eorzea at all. I do not think we have lost the echo. The reasoning behind this is that the echo not only allows us to see memories and past events but allows communication with other beings outside of our realm of understanding (see Midgardsormr and Ascians). Notice how after Midgardsormr took, sealed, etc the Blessing we were still able to understand him? Or for that matter the Ascian. Had we lost the echo we'd have been like Moenyna (if I spelled that properly. I have trouble with Roe names lol) and unable to make sense of what the guy was saying.

Midgardsormr also makes a point. Will you be a pawn or will you do something by your own hands? It may very well be that Hydaelyn has turned us loose thinking we are good on our own. At this point it is conjecture, simply theory craft to be honest.