First of all: I would not kill my customers' products and thereby drag third parties into a conflict between me and another party. Dragging third parties into a conflict makes the outcome wildly unpredictable as FTDI must have noticed by now since their latest drivers no longer have anti counterfeit measures.
All it's clear, but what you will do to protect your products? How you will prevent to using your codes on clones?
Secondly is it common knowledge you can't milk a cow forever so you either have to lower prices and/or come up with a new product so I would have tried to stay ahead by creating new products at lower cost.
That is call real competition. FTDI made first and still make good products for USB bus interface with excellent functionality. Even Cypress with their CY7C65213 that copying FT232R pin to pin do not have UART Rx, Tx signal level inversion, that very useful for engineering design. FTDI have huge amount open documentation in form of AN and TN that useful for engineers and enthusiasts, while Cypress and other have one two documents, and that is all.
All in all the competition coming up with alternatives for succesful products is the way the free market works and in many cases there is very little you can do about it especially if you are not a multi-billion company with thousands of lawyers.
Absolutely agree. Competition! Real competition - that is rear alternative solution with full infrastructure, documentation and support. But not stealing alien ideas and cloning their devises under stolen name.
If somebody will try to do same with Apple iPhone, make 1:1 copy with their current iOS version, believe me, next day Apple will do same as FTDI - release new update for turn fake clones to bricks.