Fair enough, but it was never a problem because most software like Terraform would not have been open source to begin with in the good old days. So in a way yes

Fair enough, but it was never a problem because most software like Terraform would not have been open source to begin with in the good old days. So in a way yes, what you said is true, but I don't think the takeaway is "open source used to work just fine", but rather "sometimes a non-open-source license is really what works in this scenario".