First, reading the Google webmaster blog, I don't read about penalty hits.

Second, like it or not, creators of WYSIWYG web authoring software have to face the changing landscape of web visitors and the different devices they use at some point. Xara, Serif (who likely is in process in doing this) and the others simply have to move in the direction of fluid sites be they responsive sites or ...?

However, search engines are "dumb." They are looking for the m. Redirect. Make a sub domain, copy the site into it and provide the redirect. It will take the boys in California a while to figure that one out.