It doesn't seem wise to give people against you a reason to rise, gather, be visible and reward the protest with a decision reversal. Now you can expect similar demostrations whenever you step the line.
The difference between some protests and a revolution is listening to the people so backing down was a wise decision.
If he wouldn't have backed down it could have easily turned into a revolution I'm certain this is not the only cause of people gathering in the streets it's just the last straw.
The law was foolish but backing down was a good choice.
This is a great example of a badly informed leader that doesn't understand this "internet" thing trying to squeeze more tax money out of its citizenry.
Never attempt to tax or regulate something you don't fully understand.
Most of the protesters were civilized and informed. A few aggressors threw hardware at the windows, but I wouldn't say the overall tension against the Hungarian government has diminished.
Peopling gathering and protesting before decision makers with the expectation of change isn't something new, every protest is a little revolution, and they go back as far as history.
So giving people a personal issue to protest can be a pretty fair tool to distract them from other problems at greater scale.
Dooes Hungary's Government needs to distract it's people? that is another question.