You write as if you're providing some additional information that debunks the criticism here, but you're not. Stop trying to strawman and re-contextualize the conversation.
open-vsx.org is billed as "a public registry for open-source VS Code extensions, accessible for everyone" and a "vendor-neutral" "alternative" to Microsoft's own registry. To be implemented in such a way that folks can only publish to it by logging in using an auth service run by the other registry operator amounts to a compromise at the existential level.