(Warning; long post. Not for those with any attention deficit problems)
You need to widen your perspective. To say that a/the classic shape(s) are outdated; is simply untrue.
If a person likes old school and plays old school; then classic shapes for that person are not at all outdated.
If a particular yoyo fits a persons’ needs; than there is nothing wrong with its’ accepted limitations.
…abstract parallel>>> You go over a friends house. You look out the back window and your friends’ parents are playing Croquet(old fashioned game using wooden mallets to knock wooden balls through small arches).
You notice they seem to having a Great time. You tell your friend, ‘Your parents are using some seriously old fashioned gear to play that game’. And your friend says, ‘how does the classic design affect their fun factor? The equipment is allowing them to do exactly what they are trying to accomplish. Nothing more’.
Some people love to use classic shapes to do classic tricks. And some people love to ‘challenges themselves’ to hit tricks that you shouldn’t be able to hit with some classic shapes.
The term, ‘Classic’ does not misrepresent anything.
Something is only outdated if your intentions are more then the objects’ potential for you.
…I can go Golfing with an old set of wooden Golf clubs and have a perfectly good time. Just as in yoyoing; you can appreciate using the same gear the Old Timers used.
Reality in life is somewhat propelled with your ability and willingness to grasp and fully understand not only yours; but the motivations and intentions of others.
If I pick up a No Jive or older one piece wooden yoyo; I don’t expert anything other than what I accept as the limitations of the yoyo combined with my skill level. Nothing more.
The OPs’ question regarding Duncan Butterfly/Imperial yoyos May be damaging to the hobby?
First things first… Just look at this Forum. There are people on this Forum that have top flight yoyos. And yet they ‘Vanish’ continually. Players come and players go. And most of them don’t vanish for lack of Modern tools. And they don’t Vanish because they don’t have a high performance yoyo.
Currently, there are a whole lot of people throwing yoze all over the civilized World. There are dozens of Yoyo Makers currently producing product. There are numerous Teams of players representing the various Manufacturers. There are Yoyo Contests happening somewhere in the World; all year long.
I understand that there are kids or people of any age that may be immediately discouraged when they throw an ‘Un-Magic’ yoyo that doesn’t come with tricks included.
But that is true of ALL hobbies.
Equipment; whether high performance or low potential; sometimes just can’t overcome a persons’ lack of initiative.
Bottom line? A very small percentage of people that quit yoyos almost before they even start; does not ‘damage’ the hobby…
Everything Positive presently in the World state of Yo; indicates a very low probability of ‘damage’ to the hobby.