It isn't free and open source software, because it's not contributing to the ecosystem, if this company goes out of business, nobody can pick up the code and keep modifying it. It's just like closed source software in that regard.

The license includes an immediate revocation clause, so if anybody does build anything with this anyway, the license could be pulled away.

The license explicitly does not allow modifications and distribution of the modifications.

So it's source available, source viewable, museum source... But it is not open source as most people understand it. It's not part of the ecosystem that people can use as Legos to build the next project.

It's fine, it's a commercial venture, and I wish them the best success, but it is not open source. RMS would not approve.