The issue is that it's not about RedHat not wanting to redistribute "their source code". The various Linux distros are the result of a huge number of voluntary contributions from tens of thousands of people (many of which happened before RedHat was even a thing). The only reason all of those people agreed to contribute is because it was licensed in such a way that no one could later come in and take all that work for themselves. That is a huge advantage and the code that underlies RedHat's business simply wouldn't exist without it.
The disadvantage (from an individual seller making money perspective) is that you can't charge for the code itself based on any IP rights in that code and have to make money from accessory services (warranties, support, educational resources, enhanced security, customization and installation, SaaS or IaaS). RedHat not only encouraged the community to contribute, it put itself out as a champion of the free (as in freedom, not beer) software movement. Now it's trying to sneakily hinder those same freedoms. Aside from any business model arguments, that's why people are pissed.
The issue is that it's not about RedHat not wanting to redistribute "their source code". The various Linux distros are the result of a huge number of voluntary contributions from tens of thousands of people (many of which happened before RedHat was even a thing). The only reason all of those people agreed to contribute is because it was licensed in such a way that no one could later come in and take all that work for themselves. That is a huge advantage and the code that underlies RedHat's business simply wouldn't exist without it. The disadvantage (from an individual seller making money perspective) is that you can't charge for the code itself based on any IP rights in that code and have to make money from accessory services (warranties, support, educational resources, enhanced security, customization and installation, SaaS or IaaS). RedHat not only encouraged the community to contribute, it put itself out as a champion of the free (as in freedom, not beer) software movement. Now it's trying to sneakily hinder those same freedoms. Aside from any business model arguments, that's why people are pissed.