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They're doing to appeal to a whole new wave us customers. I'm not a fan of the Corvette name being used on sedans and SUVs but Ford and other automakers have proved it's a strategy that works these days.What ever brings in the money. Doesn't matter what I think since I'm definitely not a target customer for such abhorration. There will be plenty of dissatisfied hardcore Corvette enthusiasts, but I guess it will be trumped by the new demographic GM intends to reach.
Comparing to, say, Porsche's success with Cayenne/Taycan, isn't necessarily apples to apples, IMO. At least Porsche kept their brand name in place and didn't create another separate brand for them. Same with Lambo, Ferrari etc. etc. who have entered the SUV biz. But I guess GM geniuses who thought this is a good idea also thought calling it a Chevrolet Corvette E-SUV, or what ever, wouldn't be the best sounding/selling name, either.