Like in the lore? Or gameplay?
I do not think devs will screw players over for "wrong" decision. What i mean by that is that you won't suffer forever untill the end of the game, that's a bad game design.
But, BUT, your decisions will bite you in the ♥♥♥♥ later, or much later, in one way or the other, this is CDPR we're talking after all. Characters can die, ending can change, some quest can get locked and so on.
So, yes, it is bad being against NetWatch, but it is also probably bad being against the gangs too. And you know what people say - in time of doubt burn everything, up to and including the city itself.