As far as predictions go:
I don't think the drop fire fiasco will change the MHS selection or rollout - assuming the mil guns are already upgraded and the upgrade does the trick of course.
They'll lose or settle with the CT LEO. Prolly smart to settle. I think they'll lose if they don't.
The 320 in the commercial market will live on but I think it will long suffer from this episode, upgraded or not. They'll sell a lot of them. Competitors will win with them.
But while I thought it might be on track to be the "foretold" "Glock killer" I don't know if it's star will rise that far. A huge number of the 300-500K guns on the market will probably never make it in for upgrade. So that is going to cast a pall over the fleet. There will be some drop fire incidents in the future, scraping the scabs off anew.
Glock may have had somewhat similar stumbles early on but it didn't have nearly the internet, youtube and social media "institutional" memory to contend with that long ago. I mention that because I've seen comparisons on FB that seem to argue that the 320 can become the monolithic gun even after this unfortunate series of event, like Glock did after theirs. I don't know if changeable frames is quite that strong.