Yep, definitely not illegal, although IMHO there things that are legal but still unethical. And the line of ethicality is highly subjective. There is sort of a limiter in place in that if it got too bad RH could kill it pretty quickly by not publishing all the SRPMs. Although if they did that, I think the ecosystem would fall apart. I would bail.
Part of my irritation is definitely a bad taste in my mouth still from Oracle.