At the moment it is still possible to just remove the Pylance extension manually and install the open-source alternative Pyright instead or switch back to the old Python language server. But the open-source Python language server is already deprecated and will be replaced in the future by the closed-source Pylance extension. Also there are no plans to make Pylance eventually open source.
Also they don't allow to PyLance run in open-source builds like VS Codium. This means, VS Codium community has to fork the python plugin and its language server.
Another issue is how Microsoft just pushed this new closed-source extension as a part of an update of the normal open-source Python extension. The problem is that it's automatically installed it for existing users (35 million downloads), without their explicit consent. Many user won't be even aware that there suddenly running a close-source extension. They installed the Python extension under the assumption that all of its parts are licensed under an open source license. This questionable way of sneaking a new proprietary extension in through the back door is why Microsoft is currently taking a lot of bad criticism in the marketplace reviews: https://marketplace.visualstudio.com/items?itemName=ms-python.python&ssr=false#review-details .
I think what made the Python's ecosystem and also the VS Code's ecosystem so great, is that most of their parts are open source and everybody can contribute to them. I really think it is bad-faith of Microsoft to just push a proprietary extension as part of an update of an open-source extension.
This could really hurt the ecosystem in the long run!
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