Some things in life are binary. You either allow people to build new products and businesses on your work or you don't. Would you allow me to extend the product with new features? "It depends" is a form of "no". It is not a position to sustainably work from.
If you frame the licensing space as for either personal or commercial use, perhaps your point of view makes sense, but this is not a useful framing for most people, and it is specifically not something the open source community cares about.
If you wish to keep leverage over others then you do not wish to have them compete with you on the same product. That is a valid position to have, but it is squarely on the non-free part of the licensing spectrum. You don't want to play within the open source community and they don't want to play with you. All anyone owe others is to make that clear.
Yes, you would be allowed to extend the product. There is no 'it depends', the license is quite short and clear. You have to acquire a commercial license once you go over the revenue threshold, that is all.
I find this much simpler to understand than AGPL/LGPL or the linked EUPL.
This is why open source is rapidly becoming obsolete ;) There have been source-available/fair source/whatever-you-name-it approaches before.
They were attacked by OSI zealots every time because it's not real open source. Which is true, but the unsaid - or well, only sometimes mentioned - other half is that these open source enthusiasts would you rather have a bog standard all-rights-reserved commercial licence than a relatively open licence without the four freedoms!
I can't claim to read other people's thoughts, but my hunch is that this happens because it's too "close" to an open source licence so they view it as competition, while they view commercial software as either a straightforward enemy or they don't care about it whatsoever.
The history aside, this approach just makes the open source community more and more irrelevant each day, especially with the advent of "vibecode your own dependencies up". The 4 freedoms come from a place where they were about users, but gigantic corporations have shoehorned themselves into being users, and instead of the community defending against it, they think the freedom to exploit the maintainers' work while contributing nothing back is more important than keeping the commons free and shared. :P
Only siths think in absolutes.