This is concerning on many levels.

First, if Automattic/Matt would pursue a lengthy and expensive court battle just to stick it to someone they disagree with, what else will they do? How many people will they destroy in the process? As was mentioned they played the intimidation game with Wix. Matt's obsession with the GPL (well, his interpretation of the GPL) is sick and often goes counter to the spirit of the GPL. The GPL actually takes away freedom, despite what it claims.

Second, if Automattic/Matt would pursue a lengthy and expensive court battle of this magnitude, only to lose so spectacularly, it makes me seriously question their judgement when it comes to things like the React patent clause. Are they really willing to put WordPress users at those risks for the sake of JavaScript? Matt's obsession with React is also sick.

Third, it looks like Matt is intentionally trying to kill parts of WordPress and the ecosystem. Here's this from Weston Ruter on a Gutenberg issue.
I think it's the intentional and conscious decision of Matt that the technical debt must be cancelled if WordPress is to evolve in the way that it will remain relevant in the future.

Essentially, Matt wants to kill it and start from the ground up. This is a dangerous game he's playing with WordPress. Many people's lives will be destroyed if this goes wrong. Many people specialize in WordPress and have put a lot of time into learning how it works.

How can we possibly want automatic updates for major versions of WordPress (the push/wish of many for a long time) if Matt is so willing to axe so much of WordPress in one go?

I think it's time for Matt to hand over the reigns of the WordPress Foundation and the open source project. Let him do what he will with Automattic. He is no longer acting in the best interest of WordPress as a whole.