Actually everyone can just ignore it existence and move on. There will be people that use it, it won't become big distro, and will die in a few years, it doesn't deserve attention that it gets.
I also think that story and part mentioned in the post about both hyperland and vaxry is mischaracteristic (and drew de vault calling other people weird is weird in itself) that was blown out of proportions later. I don't use nor plan to use it because it doesn't meet my requirements, nor care for the guys views.
You can pretty safely assume that both things are true, they are lying about details, and that houties probably at least made an attempt. First so they can jerk themselves off about how powerful and useful their thingy is, and at the same time how only they can be allowed to make them because they are good and responsible. And terrorists would use commonly available tools.