It reads perfectly clear. It is designed to be a platform and mit license makes it too easy for other people to create competing services and they don’t want that.
Maybe it was a mistake on their part to make it initially open source or it is bad that there are people looking to steal other people’s work
It depends what it is used for. It is not so simple if they are profiting off it and you start profiting as well by stealing their customers. Maybe it is ok even then, but it sounds like it would be super annoying if the “thief” is just copy pasting the code without adding any value
Maybe it was a mistake on their part to make it initially open source or it is bad that there are people looking to steal other people’s work