"Beating" AOO is trivia, relative to beating proprietary vendors; hopefully latter is driving decisions. In any case, I'm not sure AOO really started race to bottom -- LO required MPL contributions before AOO came to light. AOO under a permissive license may have just allowed LO to do what would've taken them forever to do otherwise. Which is a little different than reacting from a weakened position. Caveat: this is from memory, I could have sequence and causality completely wrong.
That's a good page on the libreplanet wiki; made a couple edits.