Personally been using GitPod a lot for mentoring and small workshops. (but also coder).
Though I get that you can't really say that you're gutted. And at least they aren't giving Codespaces away for free, so you can at least compete.
And I guess companies like Shazam and TomTom still exist, despite Google making way better free versions of their products.
GitHub entering this space gives them additional validation of the existence of a market for this kind of product and gives a lot of additional exposure to the product idea as a whole.
Even if they will now get a smaller percentage of developers using this kind of tool, the rise in the total number of developers using such tools will most probably make up for it.
Also great work leading the charge on the COVIDSafe app last year - I knew I knew your name from somewhere!
ps. If you run technical workshops I would <3 to speak with you https://www.gitpod.io/blog/workshops-as-code