The reason I dislike this is because of the game it creates. Let's say we have someone who developed a small, well-used dependency (say: xz) but there is now incentive to be "in the dependency chain." xz is open, LLMs are really good at stealing/recreating; what stops someone from publishing rxz (maybe a rust port, maybe a gnu-r port, maybe it's "Really fast" xz, maybe it's just hoping for a typo in a registry.) This new dependency adds very little over the original xz and xz could have just used a simple PR.

On the other side of things, does accepting a PR from someone grant the author the ability to collect royalties for that software project? If so, how would you quantify that? LOC seems like a quick but really bad answer for what it is incentivizing.

For many, the entire point of "F" in "FOSS" is not getting tangled up in this kind of mess. I personally would never want to add "am I opening myself up to a lawsuit if I don't pay someone for their PR" to enter my calculus of accepting a PR. Especially if this is because I reject payment at all on a project.

Finally, if a company/employee submits code to FOSS under this model, do they now expect a return?

This new dependency adds very little over the original xz and xz could have just used a simple PR.

I kind of like the incentives created by this competition. This "what if someone takes your software, adds one feature, and sells it" argument has been made many times and I think the answer is that you, as the original maintainer, are in the best position to add features and if you squander that position you deserve to lose.