From the developer side I feel like this type of license makes the most sense to me too.
After selling a desktop app with a license like that for a little while though, I’ve also unfortunately realized that not everyone understands it. I had a number of customers referring to it as a “subscription” (which it wasn’t, because it didn’t auto-renew and you could keep using the last version forever) or “lifetime” (which it wasn’t, because the updates were a paid option after a year).
Plus it’s hard to adequately explain how it works in few words.
For better or worse I think the majority of people understand 2 buckets: “subscription” and “lifetime”. So I went back to selling a lifetime license, with a caveat that any new features that incur ongoing costs might need to be an optional add-on subscription/pay-as-you-go/etc plan to cover those costs.