What Minio is doing wrong here is thinking too highly of themselves. Their product is a fine implementation of S3-compatible object storage. It has some features that make it attractive for selfhosting. It's far from the only solution, though. The harder they make it to use, the more people are going to switch to easier alternatives.
A lot of companies try to lock down their popular open source/free products once they have a large market share. It always backfires.
Hashicorp did this. There's no reason to use Terraform anymore; OpenTofu is a drop-in replacement that is just as good for almost everyone, and all the community support will shift to it such that it will inevitably be far superior to Terraform.
Redis became Valkey. MySQL became MariaDB. OwnCloud became Nextcloud.
There are countless examples. Yeah, the commercial entities continue to exist. For companies that need support and contracts, there will still be a market. But they are destroying their pipeline for new customers. Why would anyone use a closed commercial project with no community contribution when there's a free, open source option that's either a 100% compatible drop-in replacement or a low-effort pivot to a functionally-equivalent solution without vendor lock-in and burdensome restrictions?
Minio is shooting themselves in the foot. Most people don't give a crap what's backing their object storage, so long as it works.