I own two proper Omegas and all the original Moonswatches. I don't feel it's hurt the Omega brand one bit in my eyes, I love both my Omega and Swatches for what they what are.

I like that Omega are happy to do this, I think it shows they don't take themselves too seriously, compared to say Rolex.

It also maybe helps that every interaction I've had with Omega sales people have been great, and every interaction with a Rolex sales person has been bad to awful.