Bailsongs actually are legal in many states, and, depending on local laws, may or may not fall under the fedral def. of the switchblade law depending on local jurisdiction. They are also open to those outside of the US. In addition, I'd like to point out that while in many places they are illigal to carry, they are legal to own and collect.
Actually, the Sifu is illigal all over the place due simply to its blade length. If you read the fedral swithblade law, even Spyderco's could be read as switchblades (open and lock with one hand due to centrifigal motion or innurtia).
Lastly, bonafide switchblades, which are illegal all over the place are still produced by MT, BM, Paragon, Dalton, S&W, etc., etc., ect. and still doing very well.
I can't address your PR nightmare question because i'm not sure were it is founded. BM has no such PR problem (at least not for that reason), and I don't see how adding a bali to the line up will tarnish the image of a company that produces fighting and defensive knives already. The bali is simply another way to open your blade one handed. Hope that helps some.
Respectfully, E.