As much as I hate the changes (I uninstalled Unity for the last time), this doesn’t actually address how it’s bad for students or teachers as opposed to everyone else.
The terms are certainly fine for both of them because unless they get a really lucky break, none of them are making more than 200k per year with it. (And let’s not forget you can just upgrade to pro for the year and push that to $1mil.)
That said, I do think that teachers should switch to another engine. Godot is free and has basically the same concepts, and UE has really good terms and is more powerful.