People started using the GPL because it works fine for software that isn't distributed to consumers, e.g. on servers. Those uses have subverted the entire intent of he license, however.
> Those uses have subverted the entire intent of the license
You're reading too much into the intent of the license. GPLv2 being used on servers is a valid use case.
Tivoization is indeed subverting the intent of GPLv2, which is one of the reason for GPLv3. But in the case of Tivoization, you _are_ distributing the code to end users, rather than just running it on their behalf, and hence, in my eyes, violates the intent of GPL (that end users you distribute your software to should be allowed to modify the software).
Hosted software isn't like tivoization, in that the host doesn't distribute, and so no GPL issues whatsoever.
