Agreed, this basically moves it to the "don't bother" pile. There are already the llama variants with non-commercial licenses, and open-llama as an open source model (I'm thinking in the 7B space specifically). This would have to be pretty friggin compelling to spend any time on.
Do they even have the legal justification of saying how you can or cannot use the weights? It could be ruled that weights are uncopyrightable. I think we as a community should advocate for that.
If you train on data you don't own, the results (weights, unmodified outputs) should be public domain. When people create novel works on top (SaaS tools, music, films), then those human combinations should hold copyright. Not the model weights.
If you can prove you own all of the inputs into training, then perhaps it's another story. But that could also be dangerous and allow for data cartels to own the future.