What they are objecting to is having their project co-opted by Amazon, one of the largest and wealthiest technology companies in the world. Elasticsearch and Amazon have been battling this out for a couple of years now, this is the latest move in that battle.[0] They have been very clear that the reason they are changing the license is Amazon, not "the drawbacks" of an open source license.
[0]: https://searchaws.techtarget.com/news/252471650/AWS-faces-El...
* Amazon, from the wealth of innovative managed services they could offer without fully maintaining them themselves
* OSS companies, for the ability to financially sustain their projects and still offer it for free for those that want to self host without offering a managed version of the same software
* End users, who can both use the software however they wish and also choose to get a nice managed version of it.
Instead what will happen due to AWS behavior here is that there will be a lot less incentive to develop innovative new services, at least in a non-proprietary way => therefore there will be fewer services in general for AWS to offer without doing all the product work from scratch, fewer tools in general for engineers and fewer OSS tools in particular and more Firebase-like offerings. So everybody loses here in the long run.
I'm going to go on a limb and say that whichever of the cloud providers figures out the "app store" equivalent for managed services is going to be able to take over from AWS.
There is no ambiguity in this case, they are offering the exact same elasticsearch API.
But this is not even the point. I'm not interested in the legal distinctions here at all, thats for the lawyers to delineate in more detail. The point is that Amazon are practically throwing away a huge business opportunity that would also encourage more FOSS to be built in a sustainable way ("app store" / "managed service store") for some short term gain, by throwing companies such as MongoDB and Elastic under the bus.
Having a permissive license is a massive asset for getting people to adopt your software, but it means you will have no control over what they do with it.
They want the goodwill and other benefits of a permissive license without loss of control that these licenses bring.