We didn’t want to control or manipulate people, using our code to extort a particular behavior out of them.
The FOSS community, and even the community of developers on single large FOSS projects, is large and diverse... The royal "We" doesn't really apply at all, even in the case of Linus and the kernel - sure, he's a clear leader, but he's hardly in control of the larger community and their wants.
I think the current state of open source licensing is much as it should be... MIT has its place, as does GPL, and if we're going to pretend that intellectual property is about protecting creators, then it's the creators who should get to choose.
In the world I live in, intellectual property is a barrier to entry that's primarily used by organizations with a lot of power (money) to prevent others from disturbing their plans of making more money. MIT seems most appropriate for individual creators to assure that that world doesn't come crashing into their bedroom with CDOs and lawsuits. GPL is "cute" - but I think most practitioners of GPL licensing don't have any clue how far out of their depth they are if they should ever seek actual enforcement of their self-declared license terms. That's not to say GPL is toothless. It gives small players a tool to amplify the trouble they can make for those who would violate their license (primarily mode of violation being by use of the code so licensed.) But, other than making minor trouble for the bigger players, thus discouraging the bigger players from entangling with them, GPL isn't going to "make" the bigger players do much of anything other than stay away.
GPL does shape the community, it has its effects, I just get tired of hearing about the specific immediate legal language of it, because that's far from the actual effects it has.
The whole legal/courts system is pretty dysfunctional at the low end of the economic spectrum (like: license fees that a group of 10s of developers might charge...) We have a shared well with our neighbor, put there by the previous owner of both properties. When he tried to sell to a previous potential buyer, they tried to hammer out a legal agreement around the shared well, and it just wasn't feasible. The cost of anything approaching a legal agreement about sharing maintenance of the well cost more than putting in two new wells.