While you didn't state anything incorrect, the debate is more complicated than that. E.g. Habeck from the greens (vice chancellor) said to consider the consequences should such a proposal fail. I think such a failure would have very much the opposite effect and strengthen the AFD and right wing positions in Germany in general. The probability of success needs to be carefully considered before going ahead with the popular request.
The Tagesschau wrote
Bundeswirtschaftsminister Robert Habeck äußerte sich in der Debatte nun aber zurückhaltend und warnte vor den Folgen, sollte ein solches Verfahren scheitern.
In terms of changes, probably.
The kitchen sink feature creep is continuing though. You can consider that good or bad, but it's a fact that it is happening.