This is proprietary commercial software with a 100% discount for hobbyist customers. It's very common in other industries, such as with fonts (this is almost identical to the model Blambot uses for some of their comic-book fonts). And there's nothing wrong with that.
I don't think there's anything "wrong" with nearly any license. If your project has been written without including other open-source components, feel free to license it under whichever license you choose. Closed-source commercial licensing is an option, and might be the best option if you're actually expecting to make a living from the code in question.
Just don't be surprised when the community doesn't respond well when you take an open-license project, accept unpaid contributions from others, and later convert it to a non-open license to pay nobody other than yourself.
While I generally disagree with distributing non-free software, at least those who do it usually do not call their software "Open Source". That's what makes "Faircode" so offensive.
To be honest, I am so thoroughly sick and tired of the zealotry in the FOSS community that I no longer have any desire to release software under a FOSS license.
Normally, I couldn't care less what someone does with any software I release, so I'd normally prefer to just release code under an MIT or Apache license, but I've reached the point where I honestly no longer want to help the free software movement grow, so I'd like to release my future personal projects under a subtly non-free license. Faircode looks like a very nice option. I remember Tuomo Valkonen, the creator of Ion, moving to a license that would ban LTS distributions from distributing outdated versions of his software (basically, every time he released a new version, all distributions carrying it have 28 days to remove the old version from their archives and replace it with the new one, no matter how stable the distribution is intended to be).
Honestly, the older I get, the more my views on free software are converging with Valkonen's. Half of the reason for the license change was because he was tired of LTS distros carrying old development versions filled with bugs that have already been fixed in newer versions (he was getting flooded with bug reports for things that had already been fixed), but the other half was that he was aggravated by free-software zealots and wanted to make sure he wasn't doing anything that could be seen as contributing to their movement, and he swore that all future software he releases would be closed-source.
I do agree that I wouldn't want to call it "open source", though.
This is proprietary commercial software with a 100% discount for hobbyist customers. It's very common in other industries, such as with fonts (this is almost identical to the model Blambot uses for some of their comic-book fonts). And there's nothing wrong with that.