I don't think people understand what closed source actually is. Hint: the source is not published publicly on Git.
You're wrong, this is not free software. That's what the customers bought into, and that's what they should be receiving. Making semantic arguments is not appropriate here; "free" and "open" are not used literally in a software development context.
This only hurts the copy cats, the rest of us still have a hardware wallet with open-source software. And I'm also pretty sure it's not gonna stop the Chinese anyway...
You're advocating the "2 wrongs make a right" approach. And you're correct: this will not stop a successful copycat anyway. It
will stop me buying the "official" device.