I would seriously doubt the popularity of random people owning "seppala lined dogs". However, there are several USA Sibe breeders that took part in the breeding of false Seppala dogs, so I can understand not everyone keeps up with the politics. But true Seppala dogs are few and far between, with the majority owned by only a handful of people in Alaska, Canada, and a few were shipped back to where they came from.
As far as this mutt breed....it is a desinger mutt focused around hype, popularity, and uneducated suckers who don't understand dogs well enough to get what they need. I don't think it will curb interest in Sibes, wolf hybrids, or any other Spitz dog. I think it will just cause a rift and a lot of backyard breeding when people assume they can "create" the dogs themselves. Labradoodles come to mind.