Linus always said: He cares about the code back and otherwise not what vendors do with it. He is not in any sense one of those GNU-people about Software Freedom everywhere and for all. When the Free Software Foundation (FSF) created the GPLv3, indeed during the process, Linus already spoke out against it and said he would never ever use it[1]. He cited reasonable use-cases for which vendors have no other way than to not to give open access to devices, in part for example commercial license agreements.
The GPLv3 - from the perspective of the FSF - fixes some vital flaws in GPLv2, from Linus' perspective however is just too strict, forbids use-cases Linux has been used before previously and is extremely anti-business and would hurt the Linux project.
Whether this step of the Linux foundation is right or not, can't say for sure, but I totally understand it. A political anti-business pro-freedom-everywhere radical who already is involved in suing some of the companies she is supposed to work with on that said board? Sounds like a headache you would want to avoid at all costs.