The problem is people are much more stupid than we give them credit. I had people at work asking me if my phone is going to blow up soon or if im returning mine to buy a iPhone 7. I have a S7 Edge and im growing tired explaining to dumb arses that its not the same line of phones. But SOME people think Samsung only makes Galaxy phones and do not understand the different lines of products.
I think the damage is already done and this will affect and is already affecting their other lines. I personally do not believe they should retire the Note line and keep on it. Note 8 done proper may resurrect their line next year. BUT in reality the stigma may linger around and tank their Note 8 sales even if the Note 8 was made fireproof, bulletproof or even destruction proof in any shape or form so re-branded Note to something else would probably be the only way to go to cater to the masses.
The way forward this year is to spend craptonne more on S7 and S7 Edge advertising to show THERE IS a difference and are very good phones.