1. I can read all of the code, modify it, and self-host it for my own purposes, but the license disallows me from re-selling it.
2. I can read, modify, self-host, and commercialize a subset of the code, and the rest is an opaque SaaS.
To me, as a customer with no interest in re-selling this code, I don't see how #2 is better than #1 in any way. And I find it incredibly mystifying that I keep seeing companies ragged on here for doing #1 while the model in #2 is somehow held up as the paragon of ethical virtue or something.
Can you help me understand? Why is it better for me to be able to read less of the code I'm running?