This would mean that corporations will have no incentive to use or contribute to free software -- 80% of contributions to the Linux kernel are people working fo

This would mean that corporations will have no incentive to use or contribute to free software -- 80% of contributions to the Linux kernel are people working for corporations. I also don't see why limitation of liability is the point where right to use free software should be curtailed -- there already is no liability in software (see the no warranty clause in literally every software license). Why not put the line at making a profit at all? (Because it's obvious that disallowing users to make any money at all with a free software license would clearly be an issue.)