Yes unfortunately. The way Joomla works are the first digit after the . (.6 or .7) means a major change has been done. For all these major changes templates and extensions may not work as expected. There are a huge number of extensions on the JED that need work for them to run on J1.7.x
When the last digit changes there are rarely problems. These updates are usually just bug fixes or security updates. Occasionally they can cause issues but these are usually sorted out very quickly.
So for future reference do not update a site where the first digit is changed unless you know that all your templates and extensions are compatible. Also, a tool such as Akeeba backup should be used so you can restore very quickly should things go wrong. I myself always use Akeeba to take a backup to my local machine where I test every update before doing it on my live sites.