My understanding is that Lambda school is very focused on teaching you what you need to get a job, so if you were just "interested in tech" you would probably be better served by Udacity, other free or nearly-free online courses, or just reading books.
Right, there are certainly better options. I'm not necessarily interested from a practical standpoint, more of a theoretical one, being relatively unfamiliar with how these agreements work beyond a one-sentence description.
It says that you agree that you "are entering into this Agreement in good faith and with the intention to pay us" and will "make reasonable and good faith efforts to seek employment" as long as you are not paying them.
I don't see any specific provisions describing how that would be enforced and I bet in practice it is not a major issue for the reason I mentioned above: there isn't much reason to go through with Lambda School if you don't actually want a job in tech, so it probably doesn't happen much.