Not disagreeing with your first point, but as I see it - this only enables HF to continue to spend money on making good open source tooling + doing research on open alternatives to closed source LLMs (something sorely needed), while opening them up to more enterprise customers who primarily use AWS.

FWIW I am an ML engineer there (maybe should have disclosed earlier) and I feel pretty optimistic about the opportunities this will enable for the open source community. Maybe with the visibility into the closed door discussions I have a more positive attitude, or maybe I'm being naive.

Time will tell!