You linked the right definition but you are wrong. MIT is a Free Software license.
https://www.gnu.org/licenses/license-list.html#Expat
Open Source and Free Software are just two different philosophies – the licenses are the same. A Free Software license also works as an Open Source license and vice versa.
The uutils author knows this. His motivation was performance. It’s easier to write fast code in Rust for him.
You are mashing two things into one.
uutils don’t have any rights to tell Canonical if and when can the software be incorporated into Ubuntu.