I don't see how the license is not free. The loophole is it does not state who's definition of evil applies. Therefore you can state that your software is not evil and be done with it. If Mr Crockford decides to sue you you will have a very easy defense.
The difference being that judges are entirely happy to make precedent-setting rulings on what "use, copy, modify" et cetera mean. I don't think any judge would be willing to rule on whether a particular use of the software counts as "evil".
Even if they're presented with a case where someone is using the software in an unambiguously evil way (like, I dunno, kidnapping small children to use as sex slaves) then they probably still won't rule on that, because that creates a precedent that a judge can rule on whether something is good or evil, creating difficult situations for future judges.
