Fisher spent $1M (of "then" money) creating a "space pen", capitalized on the unique opportunity and publicity, and went from a startup to a $60M company. They knew that the astronauts could use a pencil, but that wouldn't be very profitable for them.
For Fisher, it was a capitalist triumph, and symbolized American values. For the U.S.S.R. it symbolized U.S. wastefulness, and was portrayed in a negative light.
For the media, if they can portray something as terrible, they will. It sells papers. So that is kind of a capitalist triumph as well.
In the end, it turned out to be dangerous to use pencils in space (graphite turns into a floating flammable dust while writing), so eventually both the Soviets and the Americans bought space pens.
Which was great, as Fisher recouped about $1K just from NASA! More importantly, that marketing ploy may have saved the entire spacecraft - the law of unintended consequences!