Allegedly it was to keep people from trashing the garments when they left the company. I have a few nice jackets I really don't wear because I don't represent that organization, and they are way less valuable at thrift.

The rules are if you want to get bulk discounts from Patagonia, you're right that you can just buy the clothes and do whatever to them, you just pay retail.

The assholery aspect is more personal to me I think. I like that even though they're not exactly a grassroots cottage gear maker anymore, that Patagucci actually enable and encourage secondhand use via their worn gear and repair programs and messaging. I try to give space to people and orgs who are trying to do things thoughtfully, so if someone goes out of their way knowingly to disrespect that thoughtfulness, yeah I find that distasteful.