I wouldn't call it a "Scud Knock-Off" personally.
Fundamentally, yes it is a Scud variant. However the modifications made to it make a much more dangerous missile IMO. Currently, the basic Scud-B/C is more of a political weapon then a military one simply because of its poor accuracy (unless fired in MASSIVE numbers at a single target(s).
The Qiam-1 however has likely solved the accuracy problem to some degree (IMO it probably has a CEP of <300 meters), and because of its separating warhead it will likely be somewhat more difficult to intercept by ABMs. It's also likely because of it's smaller warhead (500-600kg?) it likel has a greater range than the Scud-C/Shahab-2 it was designed from, so I would guess it has a range of ~700km. This makes it the perfect median between the Shahab-2 and Shahab-3 in terms of range.
But it's basis in the Scud is actually something of a good thing not just for Iran but also their ally Syria who is also a massive operator of the Scud family. Because it is still fairly similar to the Scud-C/Shahab-2 it will be quite easy and cheap to produce compared to a brand new design of similar size and class (such as the claimed single-stage counterpart to the Sejil reported by some), as evidenced by the images they just published.
This means while Iran works on more advanced Medium range BMs, they can produce the Qiam-1 as something of a stop-gap and also transfer the technology to Syria to greatly increase the lethality of their massive inventory of Scuds.
And as I said before, when compared to the many variants of the Scud over the years, the Qiam-1 is no doubt the 2nd best variant ever designed in terms of all all ability.
There are still problems of course, due to its Scud Heritage. The fact it's liquid fuelled makes it dangerous to fuel, takes longer to fuel then a similar range Solid-Fuel ballistic missile.