The court decision to allow him to only be a villain might be a bit of judicial overreach on my part. I can retcon and say that was a deal put forward by All Star so they can keep using him with minimal trouble from the government.Me and @Joshua Ben Ari talked about this, and I while I really enjoy this, we came up with this.
I think that the court case deciding Hyperman has to always be a villain might be a bit much, but I do like the idea of US comic-book publishers taking Confederate superheroes and re-imagining them (or repurposing them as antiheroes) after the Dissolution.
Like they might have been able to use Hyperman as the result of a HYDRA-like Confederate "mad scientist" division at countering the United States, a clone gone mad with power. So you have Superman dealing with his mad clone, the idea of nature vs. nurture, the idea of evil, and even what it means to be a superhero. Rather than a court case. It just bothers me.
And there could very well be hyperman as a dark Superman clone stories. Alternate Grant Morrison has probably written a few of them, especially the further away from the Second Great War you get. The General Zod route seemed like the most likely to me. It would require very few changes to the stories they’d already published during the war. And being his own person means they can write more unique stories about him then constantly having him being a reflection of Superman