It fails on some points. There is a login screen (you must periodically connect to Microsoft’s servers), and accounts are reportedly locked until players provide Microsoft their phone number. The chat reporting feature being discussed here is a further example of restrictions on what you can do with the game you bought.

If the free-to-play microtransaction-supported model is more financially appealing than allowing customers own a product, then anything that allows to enjoy and extend the game without Microsoft overseeing it and getting a cut (like open-source Java versions of the client and the server) is a liability. Chat reporting is to me clear evidence of Microsoft trying to justify further lock-up and ongoing subscription model. Next they will say because OSS allows bypassing or cheating the reporting they must close the source and limit mod API.

I would be fine if Microsoft continued to release the game as a separate, adult-rated but unlocked product for gamers who care (and charged for major updates, they will absolutely pay), while separately providing a locked platform stuffed with coins, marketplaces, walled garden for mods, corporate moderators, safety guarantees and whatever else for those who want an easy solution safe for children without adult oversight.