I think it is one of the best articles I read so far on how Hummingbird affects SEO: http://www.entrepreneur.com/article/229926 It is now all about using search context and knowledge graph. The main point re SEO is that you should start thinking topics and concepts instead of keywords. Google's ultimate goal with Hummingbird is to use semantic distance to help 90% of people out there who don't know how to construct proper search predicate.
So, sky isn't falling is what I understood from the article. Bigger websites seems to be the way to go.
Thanks Jeff. It's always good to keep up with the algorithm changes. Working with them is probably one of the best things you can do at this point. Appreciate the share.