Please define "commercial use", because it means different things to different people.
Also, lots of organisations have a blanket ban on AGPL, so offering it under an alternative commercial license is a great approach to enable them, but explicitly blocking it for "commercial use" makes it no longer free software, which would be a shame.
You could certainly iterate on the terms to strike the balance you want. You could make the source available to commercial clients as well. Each client can have a licensed tailored to their exact needs at a price that works for the people that make this software.
It's much more nuanced than that... Sure, we can agree that if I host and charge users to use the service it is commercial usage... but:
- If my limited company use it to manage internal development, but we aren't yet profitable (making money), is it commercial use?
- If a company uses it to manage internal development, but it isn't the product itself, is it commercial use?
- If I as an individual use it to manage a non-commercial side development project, and when it is then finished, I decide it is worth value and I sell it, does it become commercial usage, and my previous usage turns out to be non-compliant?
- Is a charity using it to manage an internal development project "making money"?
- If I as an individual provide a professional service to deploy this to "non-commercial" users, is this compliant by the license?
You really can drive a truck through the definition of "commercial use", it is nearly as bad as the original JSON license, which stated "The Software shall be used for Good, not Evil." - which is helluva subjective.
Also, lots of organisations have a blanket ban on AGPL, so offering it under an alternative commercial license is a great approach to enable them, but explicitly blocking it for "commercial use" makes it no longer free software, which would be a shame.