The binaries have not been distributed . . .
. . but the effect of Web services is as if binaries have been distributed. Many outside users are accessing those binaries which are modifications of GPL'd code without any benefit having been returned to the writers of the original code or to the community.
It is easy to see why the FSF considers this a loophole, especially given the increase expected in Web services, so I suspect this clause will be kept. Providers of Web services will need to find another way to achieve a return from their modifications than by keeping them secret. Those that figure out some other value will be key beneficiaries.
[link|http://www.aaxnet.com|AAx]