So the PySol project wants to use the AGPLv3 and the forced
distribution of source code is "a desirable effect", but it's
distributed on the non-free most-source-unavailable Launchpad webapp?
PySoy.
We are distributed via SVN and Trac on our own server. We're going to be using Launchpad for the PPA (personal package archive) for Ubuntu packaging, and it does not appear that this need be exclusively for Ubuntu. While it'd be nice to have Launchpad already released under the AGPLv3 (they're apparently working toward this) we're not going to refrain from working with the Ubuntu project over it.
Our use of the AGPLv3 is to prevent people from circumventing the copyleft licensing by hosting games using our engine only over the web, and to remove the fear of this as a barrier to adding the features which permit server-hosted games (where the game code runs only on the server). It's not based on some ideological viewpoint that proprietary webapps are unethical and should be boycotted.