I know it's only for non-profit development. I guess they're hoping people will use it to make games, which will then be picked up by publishers who will pay for a licence. At least that's how I assume they plan to make money from it.
And 5000$ is nothing in this profession. You can pay your team for maybe a week with that. Probably less.
And good games need full time people working on it. We all see these motivated young guys never getting anywhere with their things, because soon they realize it's A LOT OF work, so suddenly it stops.
Years ago it was possible, because everything could be simpler, but the bar has raised, and you need to keep up with it.
Still, it's better to only have to pay 25% to Epic and have access to one of the best engines ever for free, than to buy an official license for almost a million dollar and not have to pay royalties. Nobody has that kind of money.
But yeah, it's has become very complicated compared to the past.