A DCO would be the more friendly option.
The libraries are written by random people, what Arduino does is adopt them after ~4-6 years of existing, slapping a "© Arduino LLC" on top and maybe fixing the packet manifest. The role of Arduino is a vendor and maintainer, they don't really are upstream for much things.
I don't really understand how what they try to achieve with these new "terms and conditions" is legally possible. (https://news.ycombinator.com/item?id=45978802) They could release new software with different licenses, but they would need to rewrite most of the ecosystem to do that. Neither MIT, nor LGPL, nor GPL nor AGPL contain any reference to "terms and conditions" of one of the copyright holders, which should be followed on top of the license.