I think the team event was a great success and would recommend keeping it in place at the start of the Olympics.
It was a great introduction of the sport to the once every four year watchers. It reminded me more of a Grand Prix Final than any other competition, but it had the benefit of teams rather than individuals competing against each other. A night where from 8-11 PM in prime time on network TV, people who don't always watch the sport got to see five of the best (or at least most historied or interesting) skaters in three different fields compete for something that clearly meant a great deal to each of them, was bound to generate interest in the sport. Proof of that was how many of the skaters and how much of their music trended on Twitter. I saw Marai and Adam still trending this morning.
Even those irritating red/yellow/green stickers were relatively easy to decode for casual skating fans.
If you think of the team event as a bonding exercise for athletes who don't usually get to define themselves as team, as a lifetime achievement award for skaters who really kind of deserve an award of that nature, and an easy way (much easier than watching a couple of dozen pairs teams flailing about) for casual fans to become acquainted/reacquainted with star skaters, then you can see what a success it was.