They say "you can do whatever you want with it" ... but then license it under the AGPL. The name is funny but fleeting.
It seems to me this would allow the service provider approach and the ability to also have a commercial part (like the Funambol dual licensing approach...i.e. http://en.wikipedia.org/wiki/Funambol). This doesn't seem like an overtly nefarious scheme to reach for your $5 :-)