ET3D: If you want to give something to people, then thinking of someone using it as theft is ludicrous. Big companies make most of the products that people use, so putting a technology out of their reach means putting it out of most people's hands, simple as that.
I understand where you are coming from. This seems to be the BSD vs. GPL discussion. Allow me to share a different perspective from yours.
First of all, if I understand correctly, GPL covers only the official
library. I expect that it will be possible to build alternative, compatible encoding/decoding routines, and those can be proprietary or licensed in other ways.
Second, I do see the GPL on some products I purchase. You
can use GPL in mass products! Of course, I actually look for these products, but they do exist! You just can't link to them, but you can call them externally.
And the third point I would like to make is that big corporations are known to
not play nice when given a chance, for the sake of profit. Why should
we play nice with them, and give them an opening? Corporations don't even play well with one another! Why should
we be the sucker in this relation?
Now, to give a balanced view, it is true that GPL
does pose an uphill battle. PNG suffered. SVG suffered (is suffering?), and Xiph.org still suffers with their codecs (with BSD-licensed libvorbis). People frown on looking at that ODT extension! I think this does not happen for technical reasons, but for management ignorance. Most techies would prefer to use open standards and GPL'd code. I do what I can to educate people, and make "strange" formats a more common occurrence in people's lives.
FLIF is not revolutionary. It may find a niche (PNG's), but will not dent JPEG, I think. That progressive loading is smart, though. Clever guys! That
might make them more popular. (Still, LGPL would help on this.)
But the question we should ask goes like this: JPEG is already a popular file format for images. Corporations are trying to DRM it (as they did with MP3). Do we want to create another file format that could (likely will) follow that path? Personally, I'd prefer to have a free underdog that I can trust on.