Even if it were true (it is not: there are techniques like static analysis, intercepting client-server communication, etc., that can confirm application behavior), how is having “zero expectations of privacy with closed source apps as you cannot independently verify what they [sic] app is doing” relevant when the source is available?
Why do you say their actions were illegal? In every repository of theirs that I looked through (just app (formerly web), server, self-hosted, mobile, and desktop), the contributors on every single PR that had been merged was from someone in the org. Unless there are some other contributions that I’m unaware of, their license change was completely legal.
There are tons of community created plugins, e.g., for editors (heck, I created and maintain one) but the licenses on those haven’t been changed and aren’t impacted. For any plugin that’s bundled with SN, an AGPL license can be a problem, and I didn’t check the contributions on their plugins, so maybe there’s an issue there and that’s what you’re saying is illegal? If those are still licensed as AGPL my understanding is that’s still legally allowed when they’re doing it, so long as there are no community contributors.
Personally I don’t understand how moving away from AGPL could accomplish their goals - AGPL already prevents another company from forking their server, changing the code, and not distributing those changes to their users… is the concern that some major companies are doing that and charging for it or using it internally? But regardless, being source available instead of FOSS doesn’t impact privacy expectations.
In fact, the way SN handles this is much better than the way Signal does, even though Signal uses a FOSS license. With Signal, development takes place in a private repository and it is later (sometimes as much as a year later) merged to the public one. My point is, the license isn’t the only thing that matters.
In terms of impact on contributions from the community - well, given that there haven’t been any, there won’t be an impact to the server or app repos. But I could see this impacting the willingness of the community to continue to build and maintain plugins.