Having said that, I think they're killing the golden goose.
At one point, Gitlab's competitive advantage was relatively generous free access to private Git repos. This generated a lot of goodwill in the days when GitHub didn't provide private repos even for personal use. I'm guessing that Gitlab now views its competitive advantage as the CI / DevOps experience. Still, it feels to me like they could limit that feature specifically rather than limiting even public projects to 5 users. Right now, GitHub's offering is suddenly looking attractive again for anyone who doesn't want to fill out a separate application (annually!) for each of their open source namespaces.
I'd think it's to Gitlab's advantage to keep these users. Right now, the current policy effectively chases them away. The only projects I imagine staying are those that really take advantage of the CI, but... is that really who Gitlab wants to limit their userbase to?