And how's that leading to the demise of other vanilla projects?
The way I see it, all those negative things you wrote should rather lead to players leaving Feenix for decent vanilla servers....which in fact would be helpful to said private servers.
Not if they have invested a lot of time on feenix. Try getting all of those people onto a new almost unknown server even if it has a lot better quality. And new players just join it because it has the biggest population. Then the cycle repeats. Is that enough?