I have some sympathy for Tile. The product is something that lots of people want, and they have become the market leader (I believe that is the case anyway) and now that market is being disrupted by Apple and others, in the same way that other markets have been.
However, as a potential customer, I think that this is a market which needed disrupting. I have been interested in tile for a few years, specifically for tracking luggage when travelling. I have purchased a grand total of zero tile products. I have just never had the confidence that the network is good enough to track my bags if they did go missing.
There are only a few companies who have the network to really offer the product that works as we want it to. In order for myself and many others to buy a tag it needs the apple network to support it. Tile hasn't lost me as a customer, and a large proportion (my guess the majority) of airtag purchasers would never have bought a tile. However as is showied by this thread there are a significant number of current tile customers who are planning on moving.
I suspect that tile will survive, as have many businesses in other areas that apple have moved into, but this will undoubtedly have a big negative impact on their business.