Degner - There is no connection between hair loss syndrome and the prion-caused chronic wasting disease (CWD) that is epidemic in elk farming operations elsewhere, so far, in North America. I've heard the hair-loss deer are fine to eat...they won't be in very good condition, probably, but are OK for human consumption.
Check out the MADelk Coalition website at
www.MADelk.org for more info on CWD.