Correct. The source is licensed with MIT license. The downloadable version from happymac.app has a different EULA. That said, the intent was to avoid people copying the app, so the EULA has been changed to now replace the two lines you quoted with: You must not: - Copy and redistribute the HappyMac app under the same or similar name

Of course, your concerns are valid on what installed apps can do on your machine. For HappyMac, the updates are stored in ~/HappyMac, so you can always verify what the app does. In contrast, a lot of applications perform truly silent updates, including Chrome, Firefox, etc. The admin privileges are not automatic obtained by HappyMac, but only obtained when you explicitly provide them...