They built on top of a license that gave the user a set of freedoms they don't want the user to have. End of story. Now they've patched this hole, but they want to keep the goodwill that comes from Open Source licensing instead of owning up to their decision and decide to blame AWS as a scapegoat, all the while acting as if their license does not violate one of the core values on Open Source Definition where you cannot set restrictions on specific fields of endeavor (in this case, the same field the product belongs to).
Now that's not okay.