What's to stop the CentOS-like distributions from each purchasing 1 copy of RHEL? Wouldn't that copy still be under GPL, with the software freedoms intact -They can then change and give away anything based on RHEL - they might have to strip out any artwork that is RHEL-specific but they have to do that anyway. Would Red Hat be able to stop them under GPL? Could Red Hat just refuse the sale?

What may this cause to a casual fedora user?

Fedora has a cult following. I remember leaving it because I had many issues with using it and how much effort it took to just make it works. I'm now on Arch via EndeavourOS and it's so smooth and enjoyable. Whenever I'd seek help or complain about something being broken on Fedora I'd get gaslight by its zealots. :/

Idk it makes sense to me. Companies using your source and work to directly compete against you is bad. Forcing competitors to use upstream is an ok solve.