...they are the worst of the worst when it comes to gaming, and it's not even close.
It seems you've never played an EA game.
I'm on record as being worried about corperate greed destroying this game, as I've seen it happen before to other games I've loved, but I honestly don't think Microsoft has had any direct impact on the state of modded Minecraft to this point. I have some reservations about the future, but I'm trying hard not to hate on them for something that hasn't happened yet.
The extended development window offered by a number of independent circumstances in 1.7 offered a product which truly spoiled us, and frankly it set the bar to a near unachievable mark for the near future. As mentioned above, several mods changed significantly between 1.6 and 1.7, and the extended window allowed them to be polished to the backbones that we now expect them to be (Botania and EnderIO being prime examples). If an extended 1.12 shows even half of the progress offered by 1.7, we could very well see some amazing things. Only time will tell.
In my opinion, the Better Together Update was rushed, and it had a ton of flaws (particularly redstone and world migration) which caused my friends to refer to it as the Better Off Alone Update. That said, it's a backward step in the right direction, if that makes sense. Uniting the platforms is a good move for everyone. Uniting the code base is a good move for everyone, too. Eventually, this can lead to a unified modding scene, as well, which would potentially be Earth shattering, and may lead to exactly what Microsoft said they wanted - using Minecraft to teach kids to code, particularly in Microsoft's new language. Again, let's not blame them (or credit them) for something that hasn't happened yet. Patience is key.
In the end, if you want to stay in 1.7, I can't really blame you. It's great. But just because you want to stay there doesn't mean everyone else should feel the same way. I'll admit it's sometimes frustrating knowing what mods I want in a pack, only to find they aren't all on the same page yet, but the longer I wait, the less I seem to run into this problem. I repeat, patience is key. And even if you decide you never want to leave the Golden Age of 1.7, others will always be riding the cutting edge and the new hotness. To each their own, so no need to hate on freedom of choice.