No, the real problem is the fact that the GSL prohibits you from redefining things. As I read the GSL, if you do a GSL product, you have to present goblins, succubi, eladrin, the Abyss, and everything else in the game in the way (both rules and flavor) that D&D presents it. We wouldn't have been able to redesign goblins the way we did in Pathfinder #1, nor would we have been able to make the changes to drow that we did in Second Darknss had we been using the GSL. THAT'S what we meant, really, when we said that it won't let us tell the stories the way we want.
While your other two points are very good ones, and absolutely valid reasons to run your own show, I don't think the GSL works quite the way you think it does.
I'm not suggesting that you reverse course or anything like that, but I do want to be sure that misconceptions about the GSL aren't spread too far. The GSL prevents you from redefining elements of the D&D game - goblins, for instance, must be goblins. But what you
can do (and, indeed, are encouraged to do!) is simply
add to that definition by creating your own sub-element. The goblin example you bring up is a good point. Goblins in Golarion are a departure from the typical fantasy envisioning of the creatures, and they don't match the 4th Edition depiction of goblins. If you call them
Golarion goblins, though, or
Varisian goblins, or anything else that adds a new sub-element to the "goblin" classification, you can
change that element to whatever you need it to be in your product, by simply making it clear that "These goblins are not the same as the goblins presented in core D&D products."
The
point of that section of the GSL, as I understand it, is to avoid a situation where a 3PP creates a product using a licensed element (like goblins) and makes it sound like their version of goblins is how
all goblins in D&D are. If that happens, the consumer might be turned off of all goblins because they're under the impression that this is how goblins work in Dungeons & Dragons, even though it's
really how goblins work only in this 3PP's products. It's not intended to restrict creativity, and I'm pretty sure that it doesn't, in practice.
As I've pointed out in the past, though, this is something that could be cleared up by Mr. Rouse pretty easily. I know he's reluctant to comment on the legalities of the GSL, but a clarification of intent like this would be pretty helpful. Anyone think they can point him this way, perhaps?
EDIT: From the GSL FAQ on WotC's website -
"Q: Section 4.1 states that, “Licensee will not define, redefine, or alter the definition
of any 4E Reference in a Licensed Product.” What does this mean?
A: This means you that if you want to use a 4E Reference listed in the GSL SRD (for
example, Dragonborn), you must not alter the definition in such a way as to define or
redefine, or alter the definition as found in the Player’s Handbook (e.g. “Classes that use
Dragonborn get an additional +1 to Strength and +1 in Intimidate). You may, however,
extend a definition by adding to the original content. As an example: “…if you want to
play a Dragonborn please refer to the Race Chapter of the 4th Edition Player’s Handbook.
For a Greatmountian Dragonborn take an additional +1 Strength and +1 in Intimidate.”
Q: Can I redefine non-mechanic materials (“fluff”)?
A: No. You may add new material, but you cannot define, redefine, or alter any 4E
Reference, including “fluff.” Please refer back to Section 4.1 on redefining 4E
References. As an example: “In this world Eladrin are between 5’ 9”- 6’ 5” in height and
can use Fey Step as an At-Will Power” would redefine the definition of Eladrin, whereas
the statement: “The isolation of the Deepwood Eladrin have allowed them to evolve with
several unique traits including being slightly taller in height, between 5’ 9”- 6’ 5”, and
after generations of meditation can use Fey Step as an At-Will Power” would extend the
definition by adding a Deepwood sub race while allowing the term Eladrin to maintain its
original definition as found in the 4th Edition Player’s Handbook."
This is a much clearer view of how the redefinition provisions
actually are intended to work.