I would have never guessed that "(v) reduce the Software to a human-perceivable form in any manner or through any process." meant "reverse-engineering, translation back to C-code, etc."
In this case "the software" means the delivered/downloaded/purchased executable. The rest of it is "lawyer-speak" for "reverse engineering".
Nor do I understand the reason for that restriction,
given the other license provisions.
Because the other restrictions govern
usage (how and where you can
run the program); this restriction protects Jim's intellectual property, by prohibiting other people from reverse engineering his code and using it to create their own screen savers. (For instance, giant clams in outer space...)
Also, with respect to the restriction on using an earlier version of MA: I believe the point is that, having purchased MA3 for my computer, I can't take the 2.6 version and give it to my Sister for her computer.
~Ralph S.