This is like saying "You have the right to privacy. The police can tap your phone, but you have nothing to worry about as long as you're not breaking the law."

"we're open source, you can use it for anything you can imagine. But you can't use it for these specific things."

Then there's the added rub of the source not really being source code, but a CSV file.

That's fine. If you want to set that expectation, great! But don't call it open source.

It's fine in that I'm happy to use it and don't think I'll be breaking the terms anytime soon. It's not fine in that one of the primary things that makes open source open is that an open source license doesn't restrict groups of people or whole fields from usage of the software. The policy has a number of such blanket bans on industries, which, while reasonable, make the license not truly open.