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If it is not an open source license, you should not call it open source.

Imagine someone saying the same thing about MongoDB's license, for example.

Is there a Linux server run on fully open source hardware (what would that mean btw?)? Should we stop using "open source" because almost all computers are not fully open source?
Quite a lot of open source hardware is licensed under the BY-SA Creative Commons license which is an actual open source license. E.g. the Arduinos and things like the Milkymist One which can actually run linux.
What are you even trying to say? The fact that this is hardware isn't what makes it non-open source, there's plenty of open source hardware out there. The thing that makes it not-open-source is that the license is non-commercial.

If you can't legally use the product, the fact that the source is available is meaningless. CC-NC is a source available license, not an open source license.

A Raspberry Pi running any flavor of linux, right?