All of this has happened before.
All of this will happen again.
The guidelines/definitions/blah blah blah exist precisely because of attempts to do this in the past.
If people want to try again, great, let them.
Experimentation is good.
(I personally wish they'd stop experimenting with repeatedly proven-to-fail models, but c'est la vie)
In the end, it's the developers who are going to decide whether it's the right way for the world to be.
That is, it's not going to destroy open source or anything else unless the people using/developing open source want it to.
Past that, Kevin's refrain is kind of tired, at least to me. Open source has always been a community that basically eats its own over time (nothing is ever good enough, free enough, open enough, etc). Solving that seems more important than solving this.
Saying "The OSS project we tried to build as a business sinks tons of money into open source and gets no help" as if it was a new problem is just silly. This is not a new problem at all. The fact that they believe doing literally the same thing that hasn't worked in the past will suddenly work to solve this problem in any meaningful way is disappointing.
For a person whose twitter bio likes to tell me how impressive they are, this is not impressive at all. I would have hoped for something better.
Because if this is all they've got, then yeah, that model of open source is likely screwed.
I will paraphrase a colleague:
The underlying issue they are trying to solve is that developers believe they should be able to extract some of the wealth they feel they created.
In open source, that wealth is often only created because the software was free. Otherwise, people would have used something else that was free but worked well enough. Developers like to often argue this isn't true, but history shows it to be true basically always :)
So saying you should be able to extract this wealth is probably wrong.
Saying you should be able to get paid a reasonable amount of money is not.