The crux is LARPing and lightsaber battles. I don't see it as a possibility with this particular lightsaber concept. For that reason, I think it extremely unlikely to be sold as a mass-produced "toy". It can be! But I think for the quality Disney desires this is only going to be used internally by CMs. If however it is somehow mass-produced and sold as an in-park purchase (I could see them developing an alternative version) and selling it at Savi's as a build kit or some kind of "some assembly required" custom creation would be a smart approach and a way to instruct buyers on the "dos and don'ts" of it's use.I would bet against something that could be so easily broken being released widely.
Selling it as an exclusive take home product "experience" much in the same way they currently sell other Lightsaber products would be a decent marketing strategy. Guests could choose option X,Y or Z depending on their own preferences. There's never going to be a one-size fits all Lightsaber. This version would just be another option. On the flipside Disney needs to develop a LARP specific Lightsaber to appease those guests. And a Hasbro-badged toy versions to cover the younger demographic.