There is a valid problem. The business has tried to solve that immediate problem without worrying about the knock on.
In this case blocking large funded competitors ripping off your work is valid. The way they've approached it has cut off a large number of valid use cases that have arguably driven adoption of RHEL in the first place.
In Reddits case for profit firms were hammering APIs and costing Reddit significant amounts. 3rd party apps also cut off ad revenue. A flat high fee cuts off those 3rd party apps entirely when your own product has significant deficiencies it upsets your most valuable users (contributors and mods).
In both cases there was potential for a more nuanced change that works for both sides.