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Here's their response to my questions about the wording.
Basically, it's your work. If you publish the story somewhere else, please credit (our magazine) as first online publication. If you don't, we're going to do absolutely nothing about it. If we venture into print, we'll contact anyone we wish to include in an anthology before doing so.
It's still vague to me! This notion supports Peter T's take, but the way their rights provision is worded they are "retaining" the rights should they decide to have a print version. They could "request" first time print rights, but they are "retaining" them.
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