It doesn't matter if you agree, it only matters if there are some decision makers that agree, and I know for a fact that there are. So the damage has already happened.
Likewise. This is precisely how it happens, and no amount of wishful thinking about how companies are going to insource the maintainance of some major FOSS package is going to change that. It simply will not happen that way, companies want to focus on their business and not on the vast amount of tooling that underpins basic functionality, they'll just use another supplier.
The only one are those that build stuff on top of terraform.
And you know what? It will always be worse building stuff on top of a proprietary technology managed by a company that can decide to discontinue it anytime. Look a all those companies that had build services using twitter api.