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I imagine they'd not be too fussed about pissing off Jones, but were more nervous of a new to market bike brand pissing off established bike community forum types by undercutting and ripping off a respected brand.
Fortunately the esteemed clientele of LUFGSS do not care for such things and just want BARGAINZ
There was a thread about this on STW a while back.
Alpkit came up with a statement acknowledging how great Jones was and how they had worked together on stuff blah blah but didn't outright say they wouldn't compete (from memory which isn't great).
There was quite a bit of sentiment expressed in support of Jones. Quite how supportive that would be if offered the same product at a quarter of the price remains to be seen.