The disconnect for Local ID10T is their assumption that IBM/Red Hat won't share the code with the upstream project, the people on the service just get the immediate backported patch before it has a chance to trickle down the usual channel from the upstream. Not that the code won't be shared.
Yeah, we thought IBM/Redhat followed the GPL, but then they started placing additional restrictions on the software sent to subscribers, which is a direct violation of the GPL. It is not a defense that they are doing it in a separate license either, because that's the only place where they could do it as the GPL is copyrighted, so they can't legally just add a clause permitting it there because they'd be creating an unauthorized derivative work.
Given that they used to not do this, but they are doing it now, what's to stop them from making the next step not contributing the sources upstream?