I disagree completely with the idea that people only still think of Fender-style guitars as good because of boutique builders. Not that I disagree with the premise that boutique builders are making better guitars for better prices. But rich engineers and lawyers play boutique guitars - almost everyone else, including most professional musicians, still play Fenders (or one of the other big mainstream brands).

Fender and even Squier workmanship is fine. Their fundamental designs are both good and iconic. In truth, most guitars on the market these days are pretty good and people mostly just choose the one that makes them feel cool and part of a musical community and lineage. So people would continue to gravitate towards Fender-style guitars for literal generations, as long as guitarists revere the legion of Fender players before them.

I say “would” because the damage here is IMO reputational. It doesn’t matter how much guitarists revere Hendrix, Gilmour, Clapton, and a zillion other legendary Strat players if enough word gets around that Fender guitars are made by assholes. They’ll stop making people feel cool. Corporate lawfare is extremely not rock ‘n’ roll.