How does this license treat commercial enterprise use over intranets and internal networks?
Simply, if run internally to a commercial company, then the company isn’t required to release source code back to the world. The license requires that if a user downloads the source they have the right to make improvements and not release these modifications. GNU GPL software in general addresses this issue the same way. If an employee has access to the source and has the right to make improvements, the commercial entity could probably view this work as work for hire and owned by the company and not have to be released outside.