Such a license does not comply with your requirements; yet, it is also valid under case law, even if it is statistically unlikely to permit enforcement against most claimed evils. Each society has certain evils that are widely accepted by the courts, so it certainly isn’t a get out of all possible jails free card.
The purpose of a license is to inform of the rights available. The user is responsible for evaluating the license, or for trusting the judgment of a third party if they are uninterested in evaluating themselves.
If the author’s entire license “This is free software for free uses, please contact me for a paid license for paid uses” then that is statistically likely to be court enforceable against exploitation, so long as the terms offered are reasonable to the judge and any expert witnesses called. The Free Software Foundation does not have exclusive rights to the words “free software”. Adoption will be much reduced for someone who writes such a license, of course, and perhaps someone will exploit a loophole that a lengthier outsourced license would have covered. Neither of those outcomes are necessarily worth the time and effort to try and prevent, especially when use of any open source license guarantees the right of exploitation for unshared profit in plain language versus the homegrown one which does not.
(I am not your lawyer, this is not legal advice.)
Using a license that allows the software to be distributed and modified, while placing restrictions or exemptions to those permissions outside of the license, at the very least sends mixed signals. My point is that if the author wants to make those restrictions, that's fine, but the license is the correct place for it. What's shitty from my moral perspective is using a commonly accepted free software license for marketing purposes, but then judging people for not following some arbitrary demands. If anything, _that_ is the unethical behavior.
"we ask (but not demand, these are words on the internet, not word of law) that you not remove the Anubis character from your deployment"
For whatever reason somebody decided to blow it out of proportion here on hn.
See also: “Npm should remove the default license from new packages” https://news.ycombinator.com/item?id=43864518