The notion of an open source entity building an open or semi-open ecosystem cannibalizing even a low-end player was already happening in phone operating systems (Android/Linux vs Windows); a parallel dynamic wasn't lost on anyone looking at the hardware/ISA side, phone or non-phone.
I don't see this as any more foolish than Bill Gates making the case for software licensing vs free software at the dawn of the PC revolution. You may disagree with one party or the other, but each laying out their case is a marketing must. If you want to compete at the low end, you have to explain your value proposition vs "free".