No, it means some people CHOOSE not to use it. There is nothing stopping them from deciding to use it, other than their own fears.
What the lawyers decide in a company that has 10k+ employees has nothing to do with the fears of anyone but the lawyers and the top management. Everyone else is just following the rules.
Working for one of those large companies, you simply don't have an option.
And the people without choices vastly outnumber the people who do have choices.
Frankly, most developers are probably happy using whatever code, under whatever license, that's available. It's the people who run the business who typically make the decisions about what's OK and what's not.
So it's developers who are punished by GPL, by and large, because many can't use the code. It's not helping those developers, and nothing zealots say or do will convince the legal department at those companies that they should change their position on (A)GPL.
Actually thinking of Amazon.com. They have competitors, sure. But they also have the budget to write their own entire stacks internally when the license doesn't fit. And it's not like their decision to avoid GPL software is hurting them in the market in any relevant way.
When something is MIT licensed, they'll use it, and they can and do contribute changes upstream. GPLv2 code requires serious hoop jumping to use, and GPLv3 software is verboten (the patent clause can't be adhered to by large companies with cross-licensing agreements: Many of these licensed patents can't be sublicensed, and so they can't be in compliance with the license at all).
So all GPL does is prevent companies from using and supporting the software. For every instance of an MIT project that ends up modified in proprietary code there are probably 100 that either use it verbatim or contribute changes back upstream. It just makes sense so that you don't need to keep maintaining an increasingly divergent fork.