There are some open-source alternatives like TIC-80 and PixelVision8. Personally, I'd only recommend them over pico-8 if $15 is a serious barrier or open source is an absolute must. They all have their various strengths and weaknesses, but pico-8 seems to be the best optimized for pure, unadulterated fun.
TIC-80, on the other hand, runs more places (Android!). And someone has ported it to run on OpenDingux portable handhelds, there's a RetroArch core, etc.
That said, PICO-8 is super, super polished and absolutely worth the $15.
Yeah and the alternatives like tic have pretty major setup problems on rpi.
I'd be fine with a "source available" paying solution for instance, as long as the terms of the license are reasonable. This way at least I know that if the project goes defunct I'm not stuck with apps that I can't easily run anywhere anymore. See all these Flash games that nobody can easily play anymore.
An example of software that works that way is SQLite: they sell extensions as source code with a perpetual (non-open-source) license.
On the other hand, being closed source help getting the "community" feel where people discover some quirk and secret features of a strange and not-totally documented device.
That said, I hope it become open-source when every secrets have been discovered.
I wasn't familiar with PICO8, it seems to effectively be a faux-retro console emulator that you can use as a sandbox to build programs (that can then be exported to a web player, which is quite nifty): https://en.wikipedia.org/wiki/Pico-8
Unfortunately it's a proprietary platform.