From what I can gather... yeah that is exactly what happened.
I don't think Hydaelyn was acting maliciously, mind, but rather going with an "ends justify the means" philosophy - that end being the preservation and salvation of the world. Maybe it does justify it, but it's still an extremely shady thing to do. (I think "reprehensible" was a bad choice of word on my part.)
Your alternative is that Hydaelyn is incompetent? Yeah, real reassuring... the Goddess doesn't know how to do her job or gauge her abilities... and for the record XIV has yet to supply me with a waifu, I'm just pissed that Hydaelyn ate our dear friend and mentor... I'm well-known for disliking Minfilia because I feel she was a nigh-useless piece of exposition-spouting eye candy outside of managerial shit we never saw her doing... but that still doesn't mean I wanted her to die...
Actually we do not, but going by the pattern in 2.x it's presumed we'll have 3.4, 3.5, and possibly 3.55 to lead us into 4.0. There's nothing that says they can't go to 3.6+, but it would come as a bit of a curve ball.
As for when 4.0 launches? Whoooo knows....