Thanks, this reminds me of the existence of the PlayStation2 in my closet.
Why do you put this on free when it isn't
Dafont does't have an option to indicate that. It's free for anything except embedding the actual font data in software/web/hardware but the only available choices on Dafont when submitting a font are:
Free for personal use
Which is odd because offering a free desktop license is pretty common these days.
Why you're making new versions of fonts with more restrictive license? I found old version from Larabie Fonts (v1.11) and license of this font is much more permissive! Old version of font is true donationware, with only two restrictions: no deriatives & no commerical distribution only (but commercial use is not restricted). If you want to use fonts from Typodermic for web, search for old version by Larabie Fonts and use them. For example, i found old version with license of this font at PS fonts collection.
It's simple: industry pressure. I can't name names but when you have distributors trying to negotiate custom license agreements for corporate clients, weird licenses are a major headache for them. It's was pretty much an ultimatum: if you want to sell fonts through our distributor, switch to a "normal" license agreement. What I ended up with is on the lenient side of a bog standard commercial use font EULA. It also doesn't clash with sites who require stock agreements. The only other option for me was to forgo commercial sites altogether but that's how I earn a living.
Google Ads of Typodermic Fonts