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Should I even consider using a product that says that in the license?
Well, I wouldn't. :)
That said, I would give ActiveState the benefit of a doubt - they have done lots and lots for perl (and others) on the windows platform. Of course they have done this to be able ot sell products also, but that is all good, because if they make money, they can survive to continue to contribute.
The doubt I am willing to give them is that perhaps the ones in charge wasn't the ones who wrote this, and maybe they didn't even look at it - it stinks of lawyer boilerplate a long way, and has happened before (although I have no links available).
Someone just notify them that the community they depend on will not accept such licenses, and I'm pretty sure they will remove it - maybe we'll even see a lot of dumb faces saying "Huh? What license?"...
They have done way too much work for me to turn around and start hating them over what at least might be a mistake. If it happens again, though... :)
You have moved into a dark place.
It is pitch black. You are likely to be eaten by a grue.