Personally, I will be less likely to choose Automattic for anything in the future. I recently moved this blog off of WordPress.com to self-hosting, although that was more about value proposition than anything else.
I don’t think it’s hurting open source in general.
WordPress is a different story.
WordPress.org’s login dialog now has a check box asking the user to confirm they’re not affiliated with WP Engine. That sends a very clear message – “You’re next, if we decide we don’t like you.” Folks use tools do not want their tools to rebel.
WordPress’ lack of evolution and foundational weakness leaves it begging for a competitor, and this just lowers the barriers.
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