Yes, they are ham radios, as well as commercial radios. They are fully functional in analog mode, but are extremely limited in digital mode.
They are only compatible with another DM-5R radio in digital Tier 1 mode. They are not compatible even with other dPMR radios.
Although the claim has been made that it will support Tier 2 with the firmware upgrade, the fact is that even with that applied it will only "work" in Tier 2 on Slot 1, which is completely inadequate to make it a fully compliant DMR Tier 2 radio.
Just like the MD-380 and the Retevis clone, there is no AMBE+ chip present. They are using a software defined AMBE+ encoder/decoder. Unfortunately for BaoFeng, the hardware they are using simply hasn't the "horsepower" to perform the tasks demanded, and Tier 2 will never be wholly enabled.
Nota bene: I owned a DM-5R for several weeks so I could test it thoroughly here in my lab. It took nearly a full month to process my refund request, and then only after having to escalate via a PayPal dispute process. I never did figure out how the text messaging worked, if it even does work for that matter.