I think it's a matter of people with vested interests throwing spaghetti against the wall until something sticks. We've often seen cries of "But how will programmers get paid if everything is free?", and "You don't need to modify the code as long as you can see it", and "Free and open source software is incompatible with commercial endeavours". What's new now is, "If you go with a free or open source piece of software, you are playing into the hands of the likes of Google who will gobble you up". This approach has be demonstrably far more successful than others.
From the perspective of someone who values free (as in freedom) software, I'm wary of diluting the brand of both free software and open source software. I think it only really serves the interests of people who do not value free and open source software. Given that the OSI actually has a trademark for open source, I hope they enforce it. I'm worried they don't have the resources to do so, though.