I think Arkeld, CS Grave & Confederate sum up what I've been thinking very well.
Copying other design without permission is wrong. However, unless enforced, it'll still happen anywhere. This is fact of life.
The company in this topic is not cheating customer, and if any the deprivation of income from original maker is not significant. Someone who doesn't care about quality knife will get anything cheap & matching his need. This is the kind of market SRM lives on, and by providing decent quality product, they actually helps their targeted customer to start appreciating quality. Even if they give lifetime warranty, anyone outside China is willing to send it in for repair? It might be cheaper just to buy another one
The observation on Chinese current economic & social condition with comparison with Japan in post WWII era is quite close. The only major differences is the cultural discipline that Japanese has (& recently Korean too growing the same way) but the Chinese do not have it across the society but only in certain groups, which I guess mainly due to vast geographical and cultural differences across the continent. I'm a Chinese myself, but have keen interest in the other two similar yet contrasting culture.
Someone who understand quality will get the right knife with deeper understanding. As such, anyone that knows the outstanding service Chris Reeve, Buck or Spyderco will be a loyal customer. This is the market segment that provides income to them, and this will not be taken away by SRM.
I see this is a case of evolution in free market across the globe. Maybe one day the company grow to be strong enough to build their own design, and some talent in China daring enough to take up designing knives as job. Given the current trend, I do see hope for SRM to transform to be better because even though they started by copying ( which is not good, but the Japanese in the past too), the way they market and the quality of the product shows potential to change to be better. Other unknown company that blatantly faking branded ones have no hope.
However, only time will tell.