I see this as an opportunity. Not to replace HashiCorp's products - OpenTofu and OpenBao are snapping up most of the mindshare for now - but to build another OSS-first developer darling company.
Btw. OpenTofu 1.7.0 is coming out next week, which is the first release that contains meaningful Tofu-exclusive features! We just released the release candidate today.
State encryption, provider-defined functions on steroids, removed blocks, and a bunch more things are coming, see our docs for all the details[0].
We've also had a fun live-stream today, covering the improvements we're bringing to provider-defined functions[1].