As I recall, Open Source was about developers collaborating to make better software. It was a pro-developer philosophy vs the Free Software movement which was all about the rights of users (and developer hostile in my view). GPL and its children are from the Free Software Tradition.
Open Source provides the same “4 freedoms” as Free Software so most Open Source licenses qualify as Free Software as well.
If the goal is developer collaboration, permissive licenses are often the best choice. If you want maximum user entitlement, copyleft licenses limit developer freedom in exchange for a guarantee that future code will also be released as free software.
Cloud hosting was a challenge that did not exist when either philosophy first emerged.
With hosting, you are able to become the preferred source for software without adding much value to the code itself. This is what the author is complaining about.
The AGPL tries to address this in the GPL family but I don’t think it quite gets there. For permissive licenses, we see these “no hosting” exceptions.
If you read the early writings from the Free Software Foundation, they do not care if devs can make a living. The goal is user freedom. I think it is this philosophy that objects to the hosting exceptions.
Perhaps a better solution will be found in the future.
I often think the solution is to move away from crafting a perfect ideology to encapsulate in your license, and just throw out some numbers. If you make more than N* the median income of this or that place, you can't use this software for free (whether that means licensing fees, code contribution, etc can vary). Let the smaller fish grow. If they get big enough, they can give back.