Allows:
- Commercial use of the software
- Commercial use of the source code for projects that run on the company's servers or internally
- Commercial use of the library is allowed if dynamically linked
Blocks:
- Commercial use of the source code for local apps that run on user's device
- Commercial use of the library if statically linked for local apps that run on user's device
I would expect a licence like MPL to be more popular than LGPL.
AGPL is best used by projects that want to offer dual licensing for a fee, so they can get corporations to fund their development.
I do agree that it's "best" used in that kind of dual licensing, but I wish companies were less allergic to it so it could be used in general purpose ways. (It or a lawyer-friendly alternative.)
That said, if the other option is something like MPL then I can think of a number of reasons why LGPL is better. At least LGPL ensures that modifications to your library itself remain free, whereas a more permissive license allows changes to be locked up entirely in a proprietary fork.
It's still more permissive than LGPL in that it isn't 'infectious' even when statically linked, the license only applies to the source file, not to any derived work. That makes the requirements more straightforward but does limit the freedom of the user to dynamically swap the library out for one that they'd prefer.
Users get the benefit of not having to keep a source code archive for compiled libraries every release, but still apply GPL restrictions and rights if you decide to copy code from within the library.
If your customer is internal, that's not a problem. But realistically, internal tooling may as well be based on pirated and stolen code. How would anyone even find out?
I think it has its charms. You can use the library as-is and everyone who cares can find the source code elsewhere (it's probably on github somewhere anyway), but you can't take it as a basis and alter it to make your own project out of it without keeping the product open.
In the modern "everything requires HTTP calls to the network" era of software, AGPL may be a better solution for making sure the source code remains open, but for old-fashioned on-device apps there's a nice balance between freedom and obligations.