I don't see the beneficial element to this project. Visual Studio Code is opensource, free of charge and used by millions at this point, why would anyone want another license just because of the license alone?
If for whatever reason you don't like this license, you can build from source. This project seems to do that and remove all of the MS branding and telemetry. There are only a handful of commits on the project so it does not look like it is massive change. The big question is whether that adds enough value and whether this project will make enough effort to keep it's fork up to date.
I agree that for the vast majority of users, using the official binaries should be perfectly fine. MS did a fine job with this product. But nothing wrong with having the choice.