No. The Elite is a (much) higher priced controller with extra features compared to the one that comes with the console. Both the Elite and the regular controller are sold in normal versions by many retailers. And both the Elite and the regular controller can be ordered in a custom design via the Design Lab.

You mentioned that your Design Lab controller(s) use regular batteries. That means they are regular controllers with a custom design. One feature of the Elite controller is that it has a built-in rechargeable battery (you can’t use AA’s with it).

People are talking about reliability issues with the Elite controller which is what the OP ordered. The regular controllers like you seem to mention are generally considered to work well.

I am not in a position to judge if this merger will be good for the industry, but this round of layoffs says nothing about that either.

On an individual level it is terrible for the people involved. But on the business level this is a perfectly normal and healthy thing to do and says absolutely nothing about the state of the games industry.