Earlier quoted context omitted.
AGPL would still allow a third party to fork their code and create a commercial product out of it, which is what they are opposed to. The AGPL only requires that the host also provides their code.
No, it also requires that it's licensed under the AGPL, meaning the users get free software.
What it doesn't ban people from doing is selling a service, which is different from their license that allows only non-commercial uses.