I'd be interested to hear the author's answer to your question, but I see it as an interesting proof-of-concept. It's testing the viability of not only rewriting PostgreSQL in Rust (and their choice of deps) but also in switching the threading model and other architectural changes. LLMs shine at pumping out prototypes insanely fast, and a working prototype can put an end to a lot of speculation.

I likely wouldn't use a rewrite of such a huge project if it doesn't have the backing of the original team (or a significant fraction thereof) and a believable story for having matched/exceeded the original code quality and maintenance. I also think in general using an LLM for license-laundering is legally and morally hard to defend, although this case is different in that they chose a more restrictive license. Not a lawyer, but my understanding is that you can just download PostgreSQL, do s/MIT/AGPL/ and release it, legally. (The original MIT-licensed version still exists, so no reason anyone would prefer yours until you make another release with some compelling new feature.)