I don't think anyone doubts that they want to build up a bigger entertainment empire,
@I'm A Banana .
We're two months out from the D&D movie and we've just heard the first concrete news in a while about the TV show. Those are definitely things they should be pursuing and you're right, I think a story about the elven civil war featuring the drow would be fantastic.
But none of that requires crushing someone who has a side hustle publishing 5E adventures from their kitchen table. And that is 100% what they're doing. And if they say that's not what they mean to do, the choices are that they're lying or they're grossly incompetent. There aren't any other choices here.
They say that's not their intent. I'm not a mind reader, and I find it very plausible that they're just real bad at this, so lets run with that for the sake of argument here first.
If it's incompetence, I think it's
understandable incompetence. The kind of incompetence that follows pretty naturally from the position they're in. The standard in the World of Corporate Brands is to have very tight control over how people use those brands. Morality clauses, the GSL's "you can't redefine" clause, legal language that protects the brand from misuse...these are all pretty standard in that world, however bad a fit they are for the TTRPG space. You can't license a Disney board game and then show Mickey Mouse doing drugs or whatever. The OGL doesn't stop anyone from making a Cleric of Sacred Nudity, and that's a risk that brand teams are not happy with. Whether they're a good idea or enforceable or whatever is kind of beside the point, the point is that WotC's Brand Team is used to a world where control of the things that could impact the brand is much tighter than it is with the OGL as it is today.
So, when the Brand Team sees that the OGL lets someone make a D&D-alike RPG and WotC doesn't control the content that RPG, they see a risk to the brand. Is it a big risk? Is it a realistic risk? Well, it's definitely not what Disney or Warner would do, and that's the world that Corporate Brand People know.
So, yeah, if you're a profit-motivated company who is looking to Monetize Your Brand, I think it makes sense that you're going to want to make sure to send the message that you don't want people doing Naughty Things with it. Even if it's actually a very bad idea, it's the kind of bad idea that's appealing to you. It's familiar. It's protective. It's even virtuous ("stewardship"). As far as blunders go, I can understand why they're making it, over and over again (because this isn't the first time they've done something like this!). I don't need to invoke intentional deception or hostility. Not that this rules out intentional deception or hostility, just a bit of Occam's Razor on my part.
"Gross Incompetence" is definitely one way to put it, but I think that loses significant nuance in its simplistic appeal. Imagining the situation more complexly, I can see the perverse incentives of market capitalism and IP management at work. And that's useful because it helps show me what can be done about it. Why cancelling DDB subscriptions has a big impact. Why WotC has made this mistake again and again (and why it's not something they're willing to budge on for whatever the next version of this is).
Shaming WotC for their actions, calling them dishonest, saying they want to ruin 3PPs, sure. Makes sense, might even be true, whatever. None of that is going to stop them from doing this. Clearly, they're still moving forward with plans in the next OGL iteration to gain more control over the content of games that use the next OGL iteration. That's not something they're budging on, even with all the public outrage. In their minds, DDB cancellations and 3PPs abandoning D&D support are a price worth paying when compared with the massive possible gains. And they're blind to the idea that messing with this legalistic license would itself hurt the brand more, because being controlling about branding hasn't hurt Disney that much, so why would D&D be any different? (well, they're going to find out, I guess).
If you want to stop them, you've gotta
remove their profit incentive to do it. Which, in the theoretical world where the Brand Shenanigans are a big driver, means you have to take it out of their control.
Which is part of why I really like the bit about the ORC being set up with a third party.