"In addition to the GNU General Public License v2 licensing terms, we explicitly grand [sic] you the permission to run any application on top of Passenger, regardless of the application's own licensing terms. The application will not be bound to the terms of the GPL in any way. That is, the GPL only applies to Passenger itself, and not to applications that are run through Passenger."
Kind regards, Hongli Lai Ninh Bui Phusion.nl
I'm not a license zealot, and think they all have their places, but I should also say a word or two in favor of the BSD/Apache style licenses: in the Apache Software Foundation, we don't rely on licenses to "keep people in line" (in terms of proprietary forks), but a strong, diverse community that has the potential to outdevelop anyone who tries to make a proprietary fork. They realize that if they fork, they're going to fall behind the community driven version, which is moving faster. Of course, that's not possible in all cases, but I think that a potentially important project like mod_rails certainly has a good shot at attracting that kind of community. You guys probably know more about the people in the rails hosting market than I do though, so maybe your fears are based on a concrete threat.