Although there is significant overlap between the two, I prefer Terraform for resource provisioning and Ansible for resource configuration.

Same, but now IBM will be able to merge them to create Terrible (or Ansiform). ;)

I like the joke. But a better integration between terraform and ansible for config would be pretty neat.

How would you imagine that working? I think a lot of people would love that, but I have seen very little specific so far.

Same. I view them like peanut butter and jelly. Terraform is my preference for new stuff and everything that isn't a stateful VM, and Ansible is my preference for managing manually created resources (which I try very hard to avoid, but always end up with some) and for managing VMs (even VMs created by Terraform). For stateful services (like a database cluster) Ansible is so much better it's not even a question, and for cloud resources (s3 buckets, managed databases, etc) terraform is a much better approach. I've never felt the two were really competitors even though there is some gray-area where they overlap.

Soon to be built into Ansible Automation Platform. Should only cost $100 per managed resource.

Is the implication that we won’t be able to freely use ansible-playbook anymore, and/or development will end on the “freely” available one?

No, the implication is that Terraform will become prohibitively expensive to use. AAP has been around for a while, as Red Hat’s downstream of (iirc) AWX. It’s also quite pricey, like Terraform may become.

Thank you