I really don't think you CO elites have much to worry about. I don't think the "masses" out there will apply for this, and if they do, they'll either 1)switch
all their flying to CO which has to be good for CO's bottom line or 2) fly a few times a year and if that is the case, it can't affect your upgrade chances that much.
The people that will apply are the Silvers and Golds on FT. How many is that?
I registered and got the approved message but did not apply for the Chase card. Why? I don't want another credit card. I don't want to switch from Delta (yea, I know what everyone on here will say about that

), and sure I can drive to MCO and fly CO but would I get the upgrades if I flew CO and put the miles in DL? Doubtful. Why would I want to open up another credit card if I'm not really going to fly the airline? I think once people think about all this, they won't apply. And if they do apply and get the status, I think most will not fly often enough to hurt the elite's upgrade chances.... but this is only my opinion and YMMV.
(okay, if somene tells me that I can fly CO and get upgraded and put my miles on DL, I'll apply in a heartbeat... Just kidding).