Phal with Flower Spike from Leaf Growing Point

[Orchid Whisperer]

That is called a terminal flower spike.

Terminal in this case just means that it is at the end of a growth (coming out an apical meristem; usually Phal flower spikes come out of lateral meristems). It is not "terminal" as in terminal illness.

Can the plant continue to grow? Yes. It will just push a leafy growth out of a lateral meristem. Most people call these lateral growths a basal keiki, but you can also think of it as the plant making a lateral branch.

So, if you still want the plant, there is nothing that should stop you.

FWIW, Cattleya orchids usually bloom from an apical meristem and make new growths from lateral meristems. (You can think of your Phal as trying to grow and flower like a Cattleya).