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I think you greatly misunderstand the implications of the Timescale License. Others have pointed out additional restrictions, but as to the restriction you mention, if it were the only additional restriction:

If I build my product on such software, host it on the official service, and latter their business model changes to no longer be a good fit for my business model (or if my model changes), I am stuck hosting the fork myself- I can't pay some one else to host it anymore. Now lets say that I am not alone- but there are several other customers in this situation- we can't band together to create a fork with a thriving, healthy community, including hosting options.

Avoiding vendor lock-in is my number one reason for choosing Open Source software! If your non-open source "Diet" Open license license leads to vendor lock-in, it is not much better to me than any other proprietary license.

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