AGPL is a market failure as I see it. I understand and sympathize with what that license is trying to do, but in practice, it just means that many companies won't touch that software (or will only touch it in a fashion where they don't modify that part of the system), meaning that there are far fewer adopters at all, and of those that adopt, fewer modify the software, meaning that it evolves more slowly than products with more used licenses.

Honestly, I'd sooner prefer to see everything licensed under BSD / MIT (Expat, X11) / ISC / etc. "copycenter" / "copyfree" licenses, for the simple reason that very few people in their right mind would use the AGPL at all (let alone in a project that doesn't involve writing network-facing software), and I'd rather see more software be compatible with as many free software licenses as possible. Aside from public domain, such non-copyleft licenses are a dream for writing free software, since the license doesn't get in the way of using such code in, say, Apache'd or GPL'd or MPL'd or whatever-L'd code.

(A)GPL, in other words, should be reserved for things that aren't meant to be reusable by other codebases. For everything that should be reusable, LGPL is about the limit for something being usable (and even that can be difficult to work with).