Free software is a dynamic. While the product at any given time can be made static, this kills the dynamic that produces the software itself.
Free software depends on far more than licensing. While I also disagree with Tim O'Reilly's FSB statement that licensing is a XXX, it is an essential component. It's also a synergistic component -- my sense is that BSD/MIT style licensing is greatly strengthened by the presence of a large, active, GPL'd software base.
The other bases of free software include the development model identified by ESR, a construction model (modularity), ubiquitous & free networking, open standards, and an economic incentive.
The Palladium initiative is an attack not on the GPL, but on the open standards and free networking components of these fundamentals.