Funny, it seemed to work well for VTK. You could maybe argue that they serve a different market (or maybe not), but the license has been very successful for them.
From their FAQ:
Can VTK be used as part of a project distributed under a GPL License?
Short Answer
Yes, it is fine to take VTK code and to include it in a project that is distributed under a GPL license.
Long Answer
Terms
Let's call project X the larger project that:
Will include source code from VTK (in part or as a whole)
Will be distributed under GPL license
Note in particular that:
The copyright notices in VTK files must be kept.
If VTK files are modified by the developers of project X, that fact must be clearly indicated.
Only the modifications of VTK files made by the developers of project X will be covered by a GPL license. The original VTK code remains covered by the VTK license.
The collection of copyrighted works (project X in this case), that includes VTK (in part or as a whole) and their software will be covered by a GPL license.
Details
As the VTK license is a variation of the Modified BSD license, to which only the following term has been added:
Modified source versions must be plainly marked as such,
and must not be misrepresented as being the original software.
and that the Modified BSD license is itself compatible with the GPL
http://www.gnu.org/philosophy/license-list.html (Modified BSD license)
Then the VTK license is also compatible with the GPL license. Since the terms of the GPL license do not preclude the additional term of the VTK license from being followed.
NOTE: The licenses are only one way compatible.
You can use VTK code inside a GPL licensed project.
You can not use GPL licensed code inside VTK.
That is the reason why there are no GPL third party libraries in VTK. Having GPL third party libraries in VTK would prevent closed source projects from being built against VTK.