Second, external contributors can use it in their work in any way that they want so long as it's not in offering Elasticsearch-as-a-service. They can even use for offering Elasticsearch-as-a-service so long as it's based on the current Apache2-licensed code rather than the SSPL-licensed code that will be in effect as of the next Elasticsearch release.
There are certainly valid criticisms of this decision, but a blanket statement that "thousands of individual contributors" are the losers here is an exaggeration.