While the AGPL would ensure that developments remain free, it will also ensure that most entities (commercial and non-commercial) that need tight integration would not touch it with a 10 foot poll.

The choice of license really depends on what the OP aims to achieve with his software.

> it will also ensure that most entities

That is simply not true. It may be true for huge corporations with legal counsel spreading FUD. But why should we care about these people ruining our lives? They're already destroying the planet and making sure millions of people are enslaved in the mines/factories across the third world, and we should provide free work for them?!

Interesting entities (libraries, schools, associations, workers coops) will not care about the software license.

Unfortunately, it is. The AGPL exposes licensees to the extraordinary risk of having to disclose any private internal/infra code that integrates with it and, more importantly, the legal and technical costs of doing so.

I assure you, even "interesting" entities care about this. Hell, even public institutions I worked for did.