It doesn't matter that the previous code is still available. Nobody can technically delete it from the internet, so that's hardly something they did "right".
The original maintainers are gone, and users will have to rely on someone else to pick up the work, or maintain it themselves. All of this creates friction, and fragments the community.
And are you not familiar with the concept of OSS rugpulls? It's when a company uses OSS as a marketing tool, and when they deem it's not profitable enough, they start cutting corners, prioritizing their commercial product, or, as in this case, shut down the OSS project altogether. None of this is being a "textbook good participant".
> Meanwhile, 99% of companies never open source anything: why aren't you complaining about how "unethical" they are?
Frankly, there are many companies with proprietary products that behave more ethically and have more respect for their users than this. The fact that a project is released as OSS doesn't make it inherently better. Seeing OSS as a "free gift" is a terrible way of looking at it.