We've been given hints that both G1 and G2 are connected. If this is a reincarnation sort of story, no, they haven't ruined it. Imo, this was pretty well crafted. They've made a soul-sequel without having to go back to the original G1 story. It keeps it simple for the newer fans while also being a highly wanted sequel for the old fans. At this point, I can't say for sure though. Until G2 is over, I won't be able to give my final opinion, they could completely screw it up for all I know. Also, let's be reminded here, LEGO isn't out to screw us all over. Unlike the gaming industry, LEGO has to keep a younger audience entertained. How are they gonna do that? Make sure they give out good quality. Bionicle was LEGO's saving grace at one point, and I doubt they'll make a story just to say G2 has a story. LEGO gives quality, and they won't do something with bad intentions. At least I highly doubt they'll do that. They are a company after all, but one of the better ones imo.