Ultimately, this game is his intellectual property. That some here decide to ignore this do not change this fact. Also, the alleged breach of the Patreon regulations are ultimately no real justification.
In any case, L&P could make it a lot harder for people not patreons to get timely access to his game. An in game update system is certainly one path in this direction. Sure, Python itself is not really good at keeping source code secret. That's why I suspect even an in game update system will ultimately be challanged, but all this take time and someone has to do it.
It will be interesting in any case.