Red Hat is still providing SRPM's for everything, including the kernel, correct? So this shouldn't affect CentOS and/or SL. In fact, Oracle should still be able to do their rebuild as well albeit making it tougher to selectively include the patches they're interested in for any customization efforts.
Red Hat is also still contributing their changes upstream, so the Linux Kernel community shouldn't be hurt either, correct?
I'm probably missing something -- but how does this hurt OSS?