Well, yes and no. Thing is, this isn't about money.
Don't believe me? Read section VI. I quote: "You may have noticed that none of these provisions discuss money."
It's about intellectual property. They (SJ Games, to include whatever writers they were working with), as the content creator, most certainly have the right to say how their property can be used. Just because you're not making money off of it doesn't give you the right to use their IP. The licensing that they refer to in the section you reference is as much (or more, I'd bet) about protecting their IP and how it is used than about $$$. And when I say "how it is used", I refer to not just the medium in which it is used (digital vs. tabletop) but, more importantly, to the content that is used in conjunction with it.
Nowhere does it say *anything* like "if a computer is anywhere near his games, you own [sic] him royalties".
Look, they are not going around suing groups of tabletop GURPS players who are sharing a single copy of GURPS 4e, ok? Nor are they suing anyone who is making/maintaining character sheets on a computer.
Sorry that he denied your request to include GURPS for OpenRPG, but neither he not his company was under any obligation to allow you to use their IP, regardless of whether money changed hands.