You can thank all those people that downloaded for free and didn't buy anything for this business model. I can definitely understand why they would want to capture some of the profits and play being made online, but this is really a blow. I hope there is enough feedback from the community to convince the WoC to open this up a bit more, but I don't hold my breath on that.
All that aside, they can't take back the 3rd edition intellectual property rights as that is expressly written into the 3rd edition gaming license and many people did work in good faith based on that license..