The situation sucks, but it doesn't change Bittensor's core thesis. A subnet is literally just open-source code, with miners doing what it asks (an incentive mechanism)
Templar will be forked, and all the progress made so far will carry over and continue to be built upon.
And that's a feature of the system. Competition has always lived at the incentive design layer. Anyone can take the subnet code, improve it, and step in as the operator. So the only thing that actually matters is who builds the system miners want to work for.
The Covenant situation is an important case study in what happens when the wrong founder flies too close to the sun. Everything Sam Dare built was built on the back of Bittensor, its miners, its liquidity, its community. And he just rugged on some personal beef with Const apparently.
Founders matter more than ever.