How does the AGPL screw over the community less than the other licenses? AGPL is problematic for a slew of reasons, lots of corporations (whether or not you agree that for-profit enterprises make up the bulk of the "community" is a separate discussion) disallow it entirely (mostly thanks to Google's precedent).
The OSI or FSF-approved licenses form an ecosystem. I can have a project which mixes AGPL, GPL, and BSD code. I can make that part of the next version of Ubuntu. I can borrow bits of code. It all works together. If the goal is to have a computer running free software, AGPL builds towards that goal. If the goal is to use the code in new and unexpected ways, AGPL builds there.
The non-OSI licenses are walled gardens. Even the ones which nominally allow remixing require me to drop a few grand on a lawyer before remixing them (more grand if it's international).
AGPL is toxic to some corporations for mixing into their proprietary projects, but the commercial dual-license takes care of that. Most corporations don't mind spending money.
AGPL also gives a long-term sustainable pathway if the original vendor goes under or goes evil.
Most people, and companies, that use this will just run an unmodified Grafana container, maybe with some plugins (not of their own). AGPL doesn't come into play here (the software is not modified).
This change would really only impact a company that takes Grafana, puts a bunch of patches on top of it and wants to offer that as a SaaS. Those guys could still even do that, they'd just have to publish their patches. Or, quite possibly, just pay for a commercial license - a lot of GPL/AGPL software is actually dual-licensed, with more ore less "dowhateveryawant"-style, paid licenses.
All of this sounds fair to me.
AGPL tries to ensure that third-party providers are at least sharing their development efforts to the same extent that those efforts were shared with them. AGPL doesn't try to give anyone an unfair advantage at providing the software as a service, not even the copyright owner.