Those license terms seem to me like they'd allow using someone's picture in unlimited advertising, for free. They also sound like they'll definitely be using them to train models. I wouldn't be surprised if some of that means they can sell them to advertisers for whatever nonsense.
My take is that they are limiting their liability in case anyone is overly letigius, or if they mishandle the data. Yes, they could do the things you describe, but my guess is they don't want to get sued by people they are providing a free service to.
