IMHO, the fact that the GPL covers only
distribution and not
usage (i.e. the GPL is NOT an EULA), is the reason for why I consider it a
free software license.
AGPL never took off because AGPL is not really free and should have never happened. Unfortunately the FSF is blinded by these so called "dangers" in their fight against proprietary stuff, totally ignoring that AGPL in practice is only used purely for marketing reasons in dual-licensing schemes, there are no communities around AGPL projects and OSI doesn't really give a shit. As a consequence, AGPL is now posturing as a free software / open source license.
> Worse still those startups often think they are on the 'good' side of the free software debate because they use some open source code in their products and maybe even contribute a bit back.
You're making it sound as if that's a bad thing.
The web is the most open distribution platform. The alternative to the web is not FSF's GNU, but rather the iTunes App Store, Google Play, Amazon's Appstore and the Windows Store. And compared to 15 years ago, the barrier to entry for kids wanting to experiment with building and distributing software is very low and the web in combination with open-source tools, libraries and platforms have made it possible. I also hate this holier-than-thou attitude.