The problem isn't Hasbro. The problem is the fandom treating Universe as though it's entirely Cassics, hence the intense anger and feeling of resentment that emanates when a non-Classics mold is redecoed in this line.

As for blurring, if people don't know, they won't care so long as they like the toy. If they do know, then they won't be confused over the different "series".

Cheetor is Beast Wars Series and Hot Shot is Armada Series, mainly as a point for collector fans to differentiate the continuities the toys come from. Kids won't care.