First thing that came to me was:
How will governance work for other derivatives than stATOM.
If all Governance was done by STRD then other networks and protocols have at least bribery options or a fair chance to acquire STRD as a protocol and use that for voting.
If ATOM gets the governance than the Hub starts controlling stake decentralisation and more on other cosmos networks - a big sovereignty risk.
This doesnt go into the tokenomics part of the conversation whatsoever, with Stride being one of the more clearly valued Tokens i think it would be a big loss to the wider community of STRD holders at this moment in time. Will need more time to fletch out details though. The fact that Stride could now pay more directly to Cosmos validators and Stakers would be good though for solidifying the ICS economic bond.