It was particularly problematic for the FOSS companies because each of these players' plans was to resell the Big Three clouds and live off of the margin, so the instant that the cloud providers decided to just directly compete in the hosting space the original company physically couldn't compete on price.
The moral of the story is that if you're releasing cloud software as FOSS you can't plan your business around the idea that you'll be the only hoster.
I think this isn’t a problem — not everyone has to contribute to any project! People sometimes struggle with the choice between GPL and MIT for similar reasons of popularity.
People who want the widest possible usage/corporate adoption can pick licenses that reflect that and embrace the tradeoff
This subthread started with the implication that people shouldn't be doing that. But you are right, that's exactly what most are doing.
I also don't understand the cloud hosting argument, when we had a great whole era of Apache/PHP/MySQL stack based on exactly this idea of commercial hosting.