The NHL season is basically toast. Could this dispute last into next year? There were predictions from various pessimistic corners that had the labor dispute doing just that, but I have to believe that the players will get some sense into their heads. Why are the owners so implacable? Because they really are losing money. And they're losing less money not playing any games. The idea that players should get a fixed portion of the revenue has made the NFL and NBA stable, profitable, and popular, but for some reason hockey players won't accept a similar arrangement.
Everybody, say it with me... OHHHHHHHHH, CYA.
As for the future? Well, the NHL will look into replacement players. (Someone call Bob Gassoff.) The draft will be cancelled, as they can't proceed without a CBA in place. Some teams may get contracted.
As for Michigan specifically... it can't hurt the chances of keeping Tambellini and/or Montoya around. NYR's Dan Blackburn has started playing again in the ECHL and will probably move the AHL eventually; if the labor dispute looks like it may drag into next year there's no way teams will start throwing money at unsigned draft picks when they can still develop for free in the NCAA. It depends on when (if?) this thing gets worked out.