OK, I finally think I will throw some more wood onto this fire.
Let me state a few things from the get-go. (Not trying to sound preachy, but it may come across that way. Apologies in advance if anyone gets a little ruffled. Oh, before anyone gets too jumpy, also keep in mind that this is In My Opinion. I'm just not going to dance around saying , It think this, I think that.

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Most of my issues have to do with business decisions.
WotC is within their rights to change the D20STL. Nobody has to like it, but you do have to abide by it if you are going to use the d20 logo.
The decency clause does not bother me. While I am an advocate for free speech, this is a gaming license we are talking about. WotC is part of Hasbro. Hasbro has shareholders. They have an obligation to those shareholders to protect brand identity and make money. WotC should be doing everything they can to protect their image.
With that out of the way, I will throw my gripe in.
I do
not like the "sole discretion" clause. This clause gives WotC the authority to demand that a publisher yank a product off the market and destroy stock ... without any mitigation/discussion/etc. It does not matter if WotC doesn't intend to enforce it this way. They have dictated that they can.
From the standpoint of a business, seeking to publish new product, this clause stinks! No business/legal advisor in their right mind is going to encourage you to open yourself up to this license. It doesn't matter if WotC ever enforces policy in this manner, the risk is too great that they will. This could kill a new publisher that just started getting their first product out the door. Wham! WotC says you have to destroy everything that has the D20 logo on it because they excercised their sole discretion. Sure, you can take them to court, except that all of your capital is tied up in that first shipment that you can't sell. From the perspective of a small publisher, it no longer makes sense to use the D20STL.
Except, that you want that logo recognition! Especially if you have helped build up the recognition of the D20 logo with prior products.
So, you end up with a quandry. Do you trust that WotC will
never enforce the license in the manner that they have specified? Ignoring the strong business sense that others will be throwing at you to not risk your business on the whim of another company. Or, do you drop the D20 logo and go the OGL route? Running the risk that stores will stop carrying your product since it isn't D20 compatible.
For all of the publishers that are not comfortable accepting the business risk, I fully understand. I acknowledge that it will probably be more difficult to get your products into more stores, and thereby into the hands of more customers. It is unfortunate that the entire gaming community is not aware of the differences between licensed DnD, D20, and OGL products. It is also unfortunate that much of this discussion probably won't educate those that aren't already involved.
As a DM/Player/Consumer, I will be happy to continue to look at your products to see if they meet my needs. I will contnue to recommend your products. The loss of the D20 logo does not mean that
I will stop buying material that I find useful. Whenever possible, I will continue to try to educate other gamers as to the wide variety of DnD compatible product out there.
That's probably a small consolation for you. But, I wanted to get that out there.
For those publishers that accept the risk and continue to use the D20STL, I certainly hope for the best for you. WotC will probably use the criteria that they have outlined. If there is objectional material by their sole discretion, they will probably just insist that you fix it in the next print run. You are either taking a chance, or showing faith and trust. I can respect either viewpoint. I will also continue to look at your products and if they meet my needs, I will buy them. As above, I will continue to try to educate other gamers on the non-WotC market of gaming material. Additionally, if WotC does decide to crackdown on you, for some reason, please post! As a consumer, I would like to hear of it and let WotC know my thoughts on the matter.
This is not the end of the world. But, it is a warning shot to the 3rd Party publishers that use the D20STL. It may cause some changes in the marketplace. I
hope that those changes do not force anybody to close up shop. But, these changes just might. With luck, the next revision of the D20STL will be a little less vague and create a "safe harbor" and this whole thing will eventually blow over.