This is what really confuses me! HA/frenk clearly are developing open source software, so they grant downstream users all the rights that go with that, including distribution rights.

So far, so good, until folks actually leverage the rights frenk handed them and he shows up and says "Please respect my wishes and don't distribute my open source code." I can see how this is very confusing for a packaging team.

It sounds like the "correct" approach here is for frenk (and HA?) to signal this lack of flexibility up front and stop distributing HA under an open source license. This will at least prevent other projects from investing in a packaging effort only to be asked to stop somewhere along the way.