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No mention of the LGPL, I wonder why.

Yeah, very notably absent. Either they have a reason and aren't saying, or they just did what was recommended without hashing it out.

We don't believe the GPL was technically an impediment to using our database because everything involves communication over API.

Moving to LGPL doesn't improve anything with regards to the non-problem of using the GPL for this purpose in the first place.

The problem lies outside of the technical/theoretical legal entitlements.

Ah I see, the perception of the letters 'GPL' was the problem which LGPL shares--that's too bad, had to choose your battles.