That's not Open Source as defined by the OSI. You can't redistribute source code and commercial use requires paying license fees to Epic (5% of revenue). So just don't get the wrong idea about that license, please.
With UE4 they have created an engine that was extensible only via C++ and via their graphical scripting language. With the notorious instability and incompatibilities of ABIs of different C++ compilers, Epic didn't have a lot of options other than releasing the engine source so that their customers could recompile the whole engine with a single compiler version. And with Unity eating away at the indie market at that time, Epic needed a successor to the free, closed source UE3 UDK to keep a foot in that market. I don't think that Epic had a lot of other options at that point.