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Isn't that what they did basically... openwashing?

I totally understand that Winamp authors want to protect the respectable Llama brand, and prevent using the license to get a bunch of half-baked copies flooding the web. Firefox also protects the Firefox brand with forbidding redistributing forks of Firefox using official Firefox icons, name and anything associated with Mozilla. But, when the license pretends to be copyleft, i.e. allowing to run, study and redistribute an modified version without limitation, but then only allow to "modify the software for private use only", that prove that no lawyer has been involved to write this license. It's very close to some of the new "open but not for commercial use" licenses that basically don't give enough freedom to be "open". Now, this may change. Well, this have to change.

They just want free support from the community without any freedom of use of their code. This should not be called open source even if the code is public on GitHub !

The main issue with the licence restrictions is the inability to fork it means nobody can even contribute to the official repo. The licence has been changed but people still have issues. Speaking of issues . . . "dumpster fire" comes to mind since people are now asking for things like Doom and Quake to be merged with winamp.