Does this have any impact on the future viability of Hyprland as a project? Should it affect (on a technical level) whether users should start using Hyprland if they don't already?
I literally installed it for the first time yesterday to take a look, but don't want to get invested in something that may fizzle out...
Hyprland itself will still continue to work just fine. What it does affect is Hyprland's ability to propose changes to FreeDesktop specifications like Wayland. Although I think only the lead dev Vaxry has been banned so potentially they could just get some other dev to do that instead.
I have seen people describing the code base to be ugly. However, the project itself looks like it will sustain. But don't go to their discord server for support if you belong to any sort of minority group.