Forbidding distillation is like forbidding using a compiler to make another(perhaps better, more efficient) compiler.
let's call it for what it really is, only companies "entitled to legally stolen data, don't steal from us now" are crying about distilation
Lots of software licenses have “non-compete” clauses that forbid you from using it to develop a competing product. Wouldn’t surprise me if there was a compiler or two out there with that restriction, most likely niche languages.