Is this not an overreaction to the rubygems rubycentral fiasco?
Imagine if someone came into your house and changed all of the locks on you/your family, because "security". You had built that house from your original designs but the other party claims they own it now because they happen to manage a series of rental listings for houses built to your design. You had even made it so the plans could be copied and modified in private; if "security" were a real concern with about 10 minutes effort to do so.
Would you agree that it is right, do nothing? Or would you rebuild something new, given how little time it takes to copy the plans.
Swap "house design" for "software project" and "rental listings" for "running an instance of your software project" and you have the current situation.
Developers are free to choose the party they trust more.