MSPFA mods are pretty unconcerned too, IMO this situation just comes off as a personal beef between Hussie and Gio (despite Gio's insistence that it's deeper than that), regardless of whoever you think is in the right. I've yet to see anyone actually involved in any significant fan works or fan work hosts that was concerned.
If anything, the only harm for fan works here is Gio insisting that you not spend any money supporting FRAF/HSBU/etc because the money from those goes to Hussie (Gio provided no proof for that claim, and it's been stated many times before that the profits from sales go into paying the teams working on all of this stuff). That, and this whole thing has really marred the idea of officially supported fan works, and unless there's a really strong response from the team this whole ordeal may leave a permanent scar. Ironic, ey?