The new liccense is incompatible with GPL, and several Linux distributions have decided to no longer use XFree86 because of that.
The GPL incompatibility is irrelevant.
From XFree86 website <http://www.xfree86.org/legal/licenses.html>:
"To avoid issues with application programs such as KDE and GNOME and other X-based applications, that are licensed under the GPL, the 1.1 licence is not being applied to client side libraries."
Therefore, it doesn't matter what distributions have decided not to include XFree86: their reasons are not because the XFree86 1.1 license conflicts with the GPL License, as I stated on another message on this thread. Everything can still be distributed in binary form without violating anybody's license, since the the 1.1 license does not apply to the client side libraries.
Peace, William
