1. Contributors
2. Customers
3. Freeloaders
The type of person who is likely to contribute will be the first to look at the license, and AGPL will rightfully worry them.
For the open source funnel, the potential customers start off as "freeloaders". They are more likely to look at the license in the first place because they are more likely to be using the software in a commercial setting and have to worry about licensing. The AGPL concerns hit them first.
The freeloaders will just switch over to a more liberally licensed project.