I'd guess that most of the "flak" is related to the scale.
However, I can see where Border Models, & a few others who are producing 1/35 aircraft, are coming from. Their target market isn't the traditional 1/32 aircraft modellers, it's the 1/35 armour modellers, who now have aircraft in the correct scale to set in dioramas with their vehicles. Plus, if they want to do an aircraft diorama, they don't have to source relatively rare 1/32 figures to go with them.
Compared to the 1/35 armour market, the 1/32 aircraft market is tiny, so producing aircraft in the more popular scale ain't a stupid business move.