It sure looks great, and was a very original idea, but I don't understand why you wouldn't want to paracord wrap a knife for hiking/camping? I bought my izula for the same reason and that is EXACTLY why I paracord wrapped it. The paracord doesn't weigh much and it could be very useful in an emergency/survival situation.
I think it depends what hiking/camping means to you.
I live in Poland which is smaller than the New Mexico state, have ~122 persons/km2 and moderate climate so in the survival/emergency situation I rather use a cell phone than the 1,5 meter of paracord

I had used a knife similar to Izula - Osa (wasp) - polish air force survival knife, wrapped with the paracord and I never had unwraped it, so the cord was just a handle.
Paracord also holds humidity and dirt between the strings of the wrap. Because I more often use a knife to prepare the food than chop the trees, I want it to be clean.
For regular outdoor use I prefer rather solid handle, and the leather one should be good.
My old scout knife had waxed leather handle and the grip was good even when wet, but of course I'll test my idea on Izula to be sure

I also don't think that a good, waterproofed leather is less durable than a paracord.
The construction of Izula is wonderful - I can change the grip whenever I want, from the leather to the paracord even twice a week so I don't worry.
If it's crap, I'll use something else, now I like it

I usually have a few meters of a cord in my backpack just in case.