Yes, that is basically the plan. It's based on the belief that unfettered AI would let anyone be a supervillain and destroy the world. There are enough would-be supervillains out there, but they rarely get far because they can't get teams of smart people to build doomsday machines for them. So the AI has to not let anyone do evil with it.
Unfortunately, that won't feel very much like freedom.
It sounds like you might not agree with that belief.
While I don't agree with their actions here, I do think there's sufficient reason to hold that belief.
On some fronts (e.g. security, on which you've experienced more than me), I think there are surmountable challenges. But on other fronts (e.g. bio), a single errant actor could reasonably kill millions or billions of people with sufficiently powerful AI. We don't have good defenses here, and those actors do exist.
I still don't agree with these actions, but I do think I agree with their assumptions.