They should keep the luxury brands exclusive and leave the fast fashion to Zara, Topshop, and H&M. However, it's understandable that some within the fashion industry would want a piece of that action. I believe this is short term thinking because the exclusivity of the brands will diminish. It will also confuse the new buyers in Asia, as some in the article suggested.
The idea of beating the fakes with your own line is interesting and it would make sense if exclusivity were not the goal. But it is the goal. If you are H&M and somebody is faking you (shockingly even H&M gets faked), you might consider reducing your prices. If luxury brands start competing with the fakes, they will have to reduce their quality and prices, and thus they will reduce their cache. The whole point for many buyers is spending a lot of money. If you want the style of the luxury brand but don't care so much about the status, go to Zara.
On the other hands, perhaps the point of a brand like Marc Jacobs is style rather than status. In this case, maybe it does makes sense. I guess it depends on the branding strategy. I still think for most developing world customers, the brands represent status first, and they buy for the "look" second. This might change. Anyway, it's a really interesting subject, in view of the expansion of these brands into the developing world.
Merry Christmas, by the way.