There is no “right” way to create a database. I do not know a universally recognized set of standards other than the famous "normal form" theory; many database projects ignore this standard for performance reasons.
There are ways to evaluate database designs — performance, maintainability, legibility, etc. Quite often you have to trade them against each other; that, in your opinion, your betrayal - trade supports legibility against productivity.
So, the best way to find out if this was a good compromise is to check if productivity gains materialized. The best way to find this is to create the proposed schema, load it using a representative dataset, and write the queries that you will need to run in the production process.
I assume that the new design will not be noticeably faster for queries such as "find STANDARD_PROPERTY_1" from the object where STANDARD_PROPERTY_1 = "banana".
I assume that this will not be noticeably faster when getting all the properties for a given object; in fact, it can be a little slower, because instead of just joining ENTITY_PROPERTIES, the new design requires joining multiple tables. You will return "sparse" results - apparently, not all objects will have values in the property_n columns in all ENTITY_PROPERTIES_n tables.
In cases where a new design can be significantly faster, you need to create a where where clause. For example, if you find an object in which user property 1 is true, user property 2 is a banana and user property 3 is not ("kylie", "pussycat dolls", "giraffe"), most likely, specify columns (if possible) in tables ENTITY_PROPERTIES_n instead of rows in table ENTITY_PROPERTIES. Probably.
Regarding maintainability - yuck. Now your database access code should be much smarter, knowing which table contains which property and how many columns there are too many. The likelihood of funny errors is high - there are more moving parts, and I can not come up with any obvious unit tests to make sure that the database access logic works.
Intelligence is another problem - this solution is not in most developer tools, it is not a standard model. The old solution is fairly widely known, commonly called an "entity-attribute-value". This becomes a serious problem for long-term projects where you cannot guarantee that the original development team will work.