They fail to define the term "Unity Runtime", "Managed Service" and "SDK Integration", though they call them out as 'defined terms' as they are capitalised where used.
I'm going to assume that the undefined "Unity Runtime" means the Unity Editor and all its dependent executables, for example, unity.exe, unityhelper.exe, etc. This assumption is based on the defintion of "Unity Software" from the 8.13 (“Unity Software” means all versions and updates of all the downloadable Unity Pro, Unity Plus and Unity Personal software products identified on Unity’s website.)
With this in mind, I read this all as being:
A) You cant run the Unity Editor tool through a cloud service provider, or on a remote server via technologies such as citrix.
(this would be to avoid licensing issues)
B) You cant create inventive ways to make use of the Unity Editor through SDK/GDK or other Middleware that you supply to customers.
(this would be to avoid people making use of a service they thought was not unity, but in the end was unity - without licensing)
C) You cant supply an emulation of the Unity Editor to deliver via cloud services.
(this would prevent what Amazon just did with MongoDB)
I love legalese long run on sentences.
"You may not directly or indirectly distribute the Unity Software, including the runtime portion of the Unity Software (the “Unity Runtime”), or your Project Content (if it incorporates the Unity Runtime) by means of streaming or broadcasting so that any portion of the Unity Software is primarily executed on or simulated by the cloud or a remote server and transmitted over the Internet or other network to end user devices without a separate license or authorization from Unity. "
I'm guessing the intent of the above is to say you cant do a "Twitch plays" unity development. Basically you have to be local to the editor to be using it.
"Without limiting the foregoing, you may not use a managed service running on cloud infrastructure[..] or a specific integration of a binary add-on (for example, a plugin or SDK) or source code to be integrated in the Unity Software or Your Project Content incorporating the Unity Runtime[..] to install or execute the Unity Runtime on the cloud or a remote server, unless such use of the Managed Service or SDK Integration has been specifically authorized by Unity. "
I'm again guessing the intent of the above specifies you cant use a whole range of things to install or execute the unity runtime on the cloud... the use of the "Your project content" in this appears to limit that you cant code into your project a way to install to a cloud location, IE, no button press deployment of the unity editor to the cloud.
The above bolded by me are the conditions, the italicised is the action.
"This restriction does not prevent end users from remotely accessing your Project Content from an end user device that is running on another end user device. "
Again, intent seems to be that you can have your "Project Content" (Defined as: “Your Project Content” means games, applications, software or other content that you develop with the Unity Software.) accessible from an end user device from a different end user device.