Ending up being caught between two stools is the situation for actual customers and they will live 'caveat emptor' from now on, that's for sure.
I personally think that neither CS nor another company gained something positive from their viewpoint. Does that help business? Open question.

If another company would spoil their box customers and blames CS for example, why not set up a small and reasonable offer for another company box owners to become CS download customers, even outside of the sales actions? Be creative!
If you handle them nicely and fair, they will always stay CS customers and avoid another company. Business continued!

They won't act like this when no company supports them.