Did you mean something else then with done more harm than good for the industry ? I don't know much about crypto or Schneiers work, I am just curious what you meant if what you said wasn't in reference to people choosing to hand code their crypto routines.
I probably mean what you think I mean. But, among other things, (i) using a broken sort algorithm is nowhere near as bad a problem as getting block cipher modes wrong, and (ii) CLR isn't a mass-popularizing evangelical text about algorithms, and (iii) basic fundamental algorithms and algorithmic analysis isn't a moving target like cryptography is.
I am not making a moral judgement about _Applied_. I don't think the guy should wear a hairshirt. As a book, it's a great book; it sold well for a reason. As an instrument of software engineering, though, it's a bit of a curse.