I'll be the odd man out, and resident curmudgeon.
Any motor without a totally enclosed case will get metal/grinding dust in it eventually. It will start arcing and the inner parts will wear. The motor shown in the photo was probably free, and it can clearly be seen was modified. The price was right but the lifespan can be hard to guess.
When the motor is free, there is no issue...just replace it when it dies. If you are buying a motor, these open frame ones are cheap, but not the best choice. Whenever possible get a TEFC motor. Pool and pump motors are made for damp locations, but not shielded from dust at all.
It is a small risk, but a fire caused by such a motor used on a grinder is not impossible.
Another small risk is the case becoming electrically charged due to shorting. This could possibly make your grinder frame a shock risk. Not likely, but one more reason for a good ground on all equipment and motors.