[nonameiguess]

The entire purpose of the Free Software Foundation is that any product you offer to a user should be owned fully by the user, which means they should be able to take it apart, modify it to suit their specific needs, and put it back together. At minimum, that means they need to be able to see the source code and be able to build it themselves and run it on their own hardware.

So yes, closed-source software as a service is inherently unethical.

You don't have to agree with them, but they've been pretty consistent in this position for nearly 40 years. It's not exactly coming out of left field.