Following the episode's release, the underpants gnomes and particularly the business plan lacking a second stage between "Collect underpants" and "Profit", became widely used by many journalists and business critics as a metaphor for failed, internet bubble -era business plans    and ill-planned political goals.    Cantor said "no episode of South Park I have taught has raised as much raw passion, indignation, and hostility among students as 'Gnomes' has. I’m not sure why, but I think it has something to do with the defensiveness of elitists confronted with their own elitism."  In January 2013, when it was announced that Parker and Stone were opening a new production studio, Important Studios, both the pair and their investors were jokingly compared to the gnomes included in "Gnomes".  
As Jesus vs. Santa became more popular, Parker and Stone began talks of developing the short into a television series. Fox refused to pick up the series, not wanting to air a show that included the character Mr. Hankey , a talking piece of feces.  The two then entered negotiations with both MTV and Comedy Central. Parker preferred the show be produced by Comedy Central, fearing that MTV would turn it into a kids show.  When Comedy Central executive Doug Herzog watched the short, he commissioned for it to be developed into a series.