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If you go the peaceful route and don't use generator districts the event really doesn't have any drawbacks until you hit the mining portion, but that modifier doesn't last too long compared to the rest of it.
If you go the military route however you'll have constant happiness and population negative modifiers.
Will even give you some minerals.
The event happens pretty quickly as well, so no real harm done
As I see it, this event is like a mocking of all the other "mysterious primitives discovered planetside, give great benefits" event.
Just read the text, where "researchers try to translate their language and they just say "hiss".
And when you give them the ship they fly to space and never return because well ship has controls optimized for your species, no way snakes can fly it!
And eventually they all die of hunger in space anyway