> If a student somewhere is willing to do the same thing as your company for free and release their work under MIT, why is that a problem?

There isn't a problem with that. The problem is when such projects aspire to commercialize their work, find it hard, and then complain when other commercial entities exploit their work.

The hypocrisy I am pointing out is that to get a software adopted initially projects choose overly permissible licenses; then when they try to monetize the project, they run into issues and cry foul.