The latter, i.e. corporate control of software, is exactly what copyleft licenses are trying to prevent. This is the very essence of the GPL.
The "license washing" of LLMs absolutely goes against the spirit of FOSS.
Firstly, the ability to “build” the best and most capable software is still locked behind frontier models, so rent is still and will always be due.
Secondly, OSS is about giving users the option to be in control of and have visibility over the software they run on their machines.
But that doesn’t mean that humans do not want or deserve recognition for the work they do to provide these libraries and tools for free, which is IMO partially why copyright and attribution are critical to OSS as a movement.
I'd argue that this is the same situation as with Tivoization [1] where the final product is not truly free even if it follows the letter of the law. And as stated in [2], this breaks at least one of the four essential freedoms of free software because I don't have the freedom to modify the program.
It's also worth noting that preventing Tivo's actions is the reason for why the GPLv3 exists.
[1] https://en.wikipedia.org/wiki/Tivoization [2] https://www.gnu.org/philosophy/tivoization.html