I don't think Putin really cares about how the rest of the world sees Russia, he's got enough guns and enough allies to not be particularly bothered about that, and his main rival is the world leader which means that they're automatically polarising the world for and against them, so Putin can just sit back and let potential allies fall into his lap if he wants to.
What Putin cares about is how his people see him, particularly the hardliners and the old favourites, military, intelligence, etc, and this tit for tat is a response to a small amount of Russian children being abused by American families. It's a simple procedure, you get the state press to make a big thing of it, and neglect to mention that more Russian children are abused by Russian adoptive parents than American ones, then when the people are sufficiently engaged by it, you introduce a law to 'fix' it, and reap the small popularity boost amongst those who brought the story hook, line and sinker. In the cities, that will be pretty much no-one, but out in the wilds where there are those who still miss Stalin, then you'll see a different figure.
Putin is a shrewd person, he has definitely not 'lost' it.