This is good for United so in that it plans right into their narrative that Emirates is a fully government subsidized entity.

And it is. Everyone stating otherwise is flagarabtly disregarding reality and/or refusing to define what a subsidy is.

Emirates can do whatever they want - the ME3 is acting under the assumption that they may as well expand before the regulatory iron clamp comes down (which it will soon). All this cheering from Americans about competition is humorous.