Until yesterday, I was not aware that gnuplot was not a GNU project, and that it was released under such insidious terms. http://en.wikipedia.org/wiki/Gnuplot#Distribution_terms
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Knew about the name confusion, but not the terms. Just like the old QMail situation, IIRC.
Would call them “annoying” rather than “insidious”, but they do make reuse in different context unworkable.
It's borderline free/nonfree; imo, basically forbidding forking tilts closer to nonfree than free.
It provides the users the ability to at least reconstuct the source code when binaries are redistributed. This aspect is at least better than the BSD licences.