If F1 splinters, overall I don't think it would be good for the sport. It won't be fair to the factory workers, people who make their livelihood trackside, or even fans who will have trouble planning their family time around watching schedules.
The threat of a split might be good though. It's a big pie, and it makes more sense to share it instead of creating two smaller ones. Sometimes seeing the alternative is the best way to see that the best option is right in front of you.
However, personally I find the behind the scenes machinations fascinating, and I'd love to watch the drama unfold. Having twice as many F1 races has the possibility of being great. (or two watered down series has the possibility of being twice as disappointing, of course)