To answer the question directly - I have never heard any animosity to LWR-inspired Gs'ers and it do not beleive it is widespread in other parts.
I think that GS'ers who ride off-piste look pityingly on those who only ride on-road and think, "they don't know what they're missing!". No animosity there.
LWR opened new horizons for many bikers.
As for the KTM vs BMW debate. KTMs reluctance was far more to do with the perceived skills, fitness and preparation of the riders + back-up team than the merits of the machine. Also the known hazards of the terrain would have worried their seasoned expert. I ride a BMW and am convinced that a KTM would have made it given the same back-up.
KTM made a very bad call on that one though!