Jimmy Choo did that with H&M a few years ago and while luckily I don't really see many of them out and about, it really did leave a bad taste with Jimmy Choo for me.
I say keep premium designers premium instead of cheapening the brand so that every jane doe can just say that they own a pair of CLs! It's not like the brand needs the money!
It's alla about marketing I guess.. Attempt to attract new customers A really strange and useless attempt, every girl would kill for a pair of CLs.. Create them cheapy looking could only broke a dream! Plus I guess that with the price increasing it make even less sense!
I wouldn't mind if he did a collab with Target. Lots of designers have done Target collabs - Missoni, Rodarte, Proenza Schouler, etc. I like a lot of the pieces from the Target collections. They've been quite successful for Target and the designers.