At the end of the day Fender not owning the shape is better for everyone in the industry, including Fender (if they care about making instruments and not continuing to be a "lifestyle" brand). If Fender cared about quality, kept up with what the modern player wants and employed musicians in their corporate offices, people would buy their guitars over competitors. The fact is they have put out subpar instruments for years now and the Silversky outsells strats because it's what people have been begging Fender for; an affordable, consistent, quality instrument. The competition should drive them to making something better, instead their resulting to bologna lawsuits.
I've worked on thousands of Fender Custom Shop, Production and Squier guitars for years now and they are almost always dogshit. If someone's looking for a Strat I recommend a Japanese Fender or a Silversky. Expensive tastes? Anderson & Suhr. But hell, Fender keeps me employed when I have to fix their poor fretwork, shoddy electronics/wiring, poorly fitted necks, badly cut nuts, etc.. I almost get bummed when someone buys something other than Fender, because I won't see them again for a while.