Not true. There are tons of projects that use GPLv3+ or GPLv2+. There's certainly adoption.
The only way that makes sense is if people thought that the GPL was the thing to use was due to it being toothless, a notion that it's strictly better to disabuse people of.
If it means lawsuits, yes. Companies will either seek out a non-GPL solution, or they will be even more secretive about their use of linux. Either way, linux loses and 95% of linux users lose....and the violations will continue anyway.
You've created a catch 22 here.
Linus doesn't care about the odd scofflaw because they don't interfere with his goal. The FSF on the other hand cannot abide scofflaws because their only goal is to eliminate them.
Linus probably doesn't care about the odd scofflaw because he has better things to do (like maintain a kernel) than to juggle lawsuits.
This is why the SF Conservancy exists.
We've already seen this with the GPLv3/AGPL. Really outside of the FSF, the only adoption is in dual-licensers who use it to drive purchases of the alternatively-licensed sources.