Didn't all this start with Linus getting into a spat with the bitkeeper dev involving some sort of punitive measure as a response to somebody making a reverse-engineered FOSS client? I don't remember the details and I'm sure I have at least half of them wrong, but that's easily one of the most disastrous decisions in the history of the software-business right up there with valve turning down minecraft and EA refusing to make sports games for the SEGA dreamcast (that last one isn't as well known but it led to SEGA launching the 2k sports brand to which outlasted the dreamcast and eventually got sold to a different company but otherwise still exists today and is still kicking EA's ass on basketball games).
It's a joke that the bitkeeper dev has two revision control named after him, Mercurial and Git.