For example, lots of in-the-cloud companies offer locally hosted versions of their services. Does that count as "conveying"? If the company goes belly-up and it needs to sell off its software assets, does that count as "conveying"? How about if the company and its software is bought outright?
I'm guessing these are not questions VCs want hanging over their business deals, and that they are willing to pay money so that they don't need to consider them.
Selling the rights to the software or the company itself is straightforward -- just because it's licensed under the GPL doesn't mean the company doesn't own the copyright! The GPL text is intentionally unclear about this, as the FSF pretends that everyone is going to assign copyright to them for 'safekeeping'.
Regarding selling rights: you perhaps misinterpreted the scenario I am proposing. I am supposing that a company has written a proprietary "cloud" internet application that incorporates Zed's GPLed Lamson component -- which you say they can do because no software is conveyed. However, if they want to sell their software or (potentially) their company, I am saying that -- cloud or not -- they will be interested in acquiring a non-GPL license from Zed because the sale of their non-GPL software without such a license may run afoul of the GPL... which is why Zed's use of the GPL is relevant even in a "cloud" context.
As barely realistic as complying with / enforcing the GPL's terms are (especially in v3), it's nothing compared to the fantasy-land that is the AGPL. The GPL at least has copyright law to piggyback off of / fall back to -- The AGPL is just a shitty EULA!
The AGPL is not as popular as the standard GPL, partly because it's somewhat new. Laconica is probably the most popular piece of software that uses it.
I don't think the FSF really has factions. People who disagree with Richard tend to just leave.
The AGPL solves that problem.
I only see two groups of people trying to make money distributing the software itself: spammers, and sellers of shit to pile on top of Exchange.
You know the GPL doesn't have (and expressly forbids adding) any sort of advertising clause, right? And you know how all those fly-by-night VC-casino startups prattle on about 'cloud' and don't generally distribute software that you execute on your own computer? (and when they do it sure as fuck isn't Ruby or Python)
Yeah.
I don't really see anybody needing to 'convey' software that uses lamson. Not only is nobody going to want to buy a license from you, are you really going to get copyright assignment from all contributors before relicensing their work?
On one end of the spectrum, the Linux kernel, the GPL works perfectly! There is a nice crystal clear boundary between kernelspace and userspace already, and the gray border region of closed commercial drivers works itself out due to the companies' desire to maintain one codebase (it's not a derived work if the same blob is used in Windows!).
On the opposite end (in order of increasing ridiculousness) there's libraries for doing basic shit in Python or Ruby, frameworks for sugaring Javascript or CSS, and motherfucking Wordpress themes. Here is where the GPL falls to pieces. Attempt no landing there.