There seems to be two separate issues, more or less: one is accessing their cloud services "illegally", the other is Bambu lab crippling their devices if you use direct access only.
I can understand their position regarding the first one, even if that sucks. Regarding the second, I don't agree with that kind of product design choice, but that's become very common. The disingenuous part of it is when the company changes the terms after a purchase has been made.
If I got it right, the company has used AGPL software and never released their modifications, and Louis is trying to sue them on that front. Good luck with that - it's also very common especially with chinese companies. I don't want to generalize to all of them, of course, but I've seen many that do exactly that. They rarely release the source code of modified open-source software that they use in their products. They seem very reluctant to do that, which is sort of hard to understand, especially considering that they tend to see IP in a different light than we do in the west, but they are very protective of their own IP and that unfortunately often extends to parts that they can't make confidential, such as open-source software.
I was considering a Bambu Lab product, but I'll certainly reconsider it now, at least I'll wait until this case is fully settled one way or another.