The GPL incompatibility is irrelevant.
[...]
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.
I do not understand you. The GPL requires that source be made available to anyone to whom you distribute binary. So how is it in any way relevant that "everything can still be distributed in binary form"?
Cheers,
-- Rodolfo J. Paiz rpaiz@xxxxxxxxxxxxxx http://www.simpaticus.com