It's just a reality that for some companies, having to release their internal source code would represent a potential loss of revenue or other business risk, or break an existing agreement or contract with a 3rd party.

So, a fair amount of the opposition to using AGPL software isn't based on some deep rooted belief that's it's somehow evil or a cancer. Just a reasonable belief that using APGL software internally might open up unreasonable risk.

I would think that the FSF would be okay with that. Companies that are unwilling to comply with the AGPL avoiding it entirely, versus using APGL software and not abiding by the license. There are certainly companies that contribute back to open source, but only for a subset of the available open source licenses.