What are you going to do if AWS/GCP/Azure decides to offer a managed services version of your software? (I know, I know, that'd be a a great problem to have.)
It prevents little in practice and makes it so that your original differentiator i.e. open source is no longer true.
I'm not sure about that. AWS had a NoSQL database, but replicated mongodb.
Anyway, I think that the risk doesn't occur until and unless supertokens hits a home run. I mean, if you're big enough for a hypercloud provider to copy, that means you've been pretty darn successful in distribution of your product.
But the risk is there.
As for the relicensing, I have sympathy for both viewpoints. I posted this in a different comment, but this medium article does a good job of talking about both sides of the issue: https://joemorrison.medium.com/death-of-an-open-source-busin...