Parts of the CERN Colt library expressly forbid military applications: http://acs.lbl.gov/software/colt/license.html. It's probably impossible to enforce, but it's a noble statement, IMO.

The problem is that the world's not so black and white. For example, the Army Corps of Engineering does substantial work restoring ecologically sensitive areas, maintaining harbors, etc. Would they be precluded from using this software to generate histograms related to a wetlands restoration project?

I think that's part of the reason for Smalltalk/X's less-than-full ban. Ambiguity is removed because potential licensees can tell them what their intended use is.

On the other hand, perhaps we should be breaking organizations out of the DoD umbrella. Do we need domestic public servant driven civil engineering projects to be under the Army? Maybe a Civil Corps of Engineers should be established to take over their non-defense projects (or more realistically, spun off).