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Red Hat strikes a crushing blow against RHEL downstreams
(www.theregister.com)
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this post was submitted on 12 Jul 2023
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The article you linked even explains that this move is in compliance with the GPL.
If people think the GPL's loophole of allowing source to only be distributed to those receiving the binaries and agreeing to non-distribution terms is a problem, then the problem lies with the GPL.
As for if Red Hat is a bad guy here...
OSS needs alternate monetization in the future if things like this would be avoided.
Personally, I'm a big fan of interested parties paying for the production of software (or media, etc) upfront and then the produced thing being available freely.
Should we ever see models move to something like that, then in that ecosystem suddenly closing source is clearly more of a bad guy move.
Here, the article you link straight up has a line about the current model allowing downstream repackaging to deliver effectively the same product without paying Red Hat. It was likely only a matter of time for them to make a move like this.
All that said, I personally would never build a product on top of Red Hat's source for anything moving forward given the potential for further decisions along these lines blowing it up later on. But as someone who was never doing that to begin with, it costs little to commit to.