Clearly, as you say, there's nothing wrong here legally. By choosing this license, Elastic explicitly allowed anyone in the world to do what Amazon is doing now.
Ethically, I can't find anything wrong about this either. As far as I'm concerned, there isn't a "spirit of open source". Open source is a way of doing business. Elastic made a business decision. The company has to live with the consequences.
One could certainly argue far too much power is getting concentrated with Amazon and other web giants, but that's an entirely different subject...