Upvote:2
The best answer was given in a comment, "The terms seem generous towards Hugh O'Neill. Not so much towards Irish mintrels, the Catholic Church, the Gaelic language... or the Irish population at large," by LuΓs Henrique. If he wants to expand on his answer, I will "stand down" this one in his favor; for now, consider this a "placeholder" answer.
The English wanted to be harsh towards the Irish population by depriving them of minstrels, the Catholic Church and the Gaelic language. For all that, they treated O'Neill as a two-edged sword. That is, while he had been a rebel in the past, they acted as if he could be "turned" by them to be used to control lesser Irishmen. That's why they offered him terms that could be construed as "generous" at the time. Later history shows that was not really the case.