It will affect categories of business users (programmers) who currently embrace terraform: amazon, google, microsoft, oracle, alibaba cloud.
Like it or not, cohorts of engineering organizations like the above (cloud providers) have a very outsized weight and already have contender products they can choose to vigorously fund tomorrow.
From the article:
The license does not allow you to use Terraform if you meet both of the following conditions: You are building a product that is competitive with HashiCorp. You embed or host Terraform in your product.
My $0.02: the management of hashicorp is following a stupid trend and should have thought about their customers more.
It will come out to what lawyers think, I guess. Lawyers usually say no to things with poorly established precedent.