The irony is that the tax break is, in a sense, already government interference - overtly favoring one company over others. So if they had gotten rid of the break for other reasons, I would have been in favor of it. But yes, as you said, they had a clear purpose of punishing a company for a business decision they didn't like.
That is true, but I think that is a hypocrisy from another angle. And that seems to be something everyplace does, despite free market rhetoric. No less an issue, but I just was not considering it initially.