Naive. Guy picks a license that allow anyone to do anything they want with his code. Later realizes that was not appropriate when he's trying make money. Changes to an obscure license that on the surface seems to fix the problem. Your options are: MIT / BSD, GPL, LGPL, AGPL. All others are unnecessary and create needless incompatibility.
I'd have to agree with this stance. You choose MIT when you are happy to share your source with no strings attached. Some do pick MIT with this intent, but that was not the case here. But rather a case of either miscommunication or wanting to have the pie ("look how altruistic I am") and eating it too ("look how business-minded I am").
I mean, there’s a chance it’s exactly what he said, “I didn't give it much thought at the time, but knew that I wanted the code to be available for people to learn from, and to make it easily auditable so users could validate claims I have made about the privacy and security of the platform.” … it doesn’t have to be some to be some sort of nefarious OSS altruism, it really could be, “maybe people would want to see how this works”… that ends up leading to … oh crap a bunch of people who have never contributed, and will never contribute, are hosting versions of what I created and taking money that I really would like to have to feed my family.