When a regulation operates to restrict the use of a brand name that was used without restrictions, the brand owner gets hurt. ATF regulates label and advertising terms. Despite the lack of authority by ATF to regulate quality , ATF can sure do a great job of regulating the use of words in labeling and advertising. ATF can't regulate quality, but they can establish standards and require that truthful, adequate, and specific information reach the consumer. Anyone can petition for a viticultural area.
Viticultural areas have value .
Viticultural areas have value. That's why they're petitioned for. That's why it's so easy to find examples of wineries promoting their wines by the viticultural areas they're from. If I were an appellation, I'd want to be a viticultural area like Napa Valley. Almost no one challenges your integrity.