Of course they understand. They are facing financial ruin so better to have a totally useless approval than no approval at all. At lease then they could sell some more of the real product, which is stock.
They understand, which is why they will still be broadcasting the wifi in the 2.4ghz spectrum. Now they will be doing it with already approved routers rather than using their own complete system. The down beam will take place in their spectrum and then be converted to standard wifi bandwidth using already approved routers. Problem solved, wait for the new ex parte.