This is not unique to Google. I've got a friend at MetaCarta who really wanted to use JSMin, but the legal department squashed it immediately because the phrase "This software shall be used for Good, not for Evil" could mean anything in a court of law.
Basically any corporate entity with a legal department worth its salt will say the same thing.
It's a shame, really, because JSMin and JSLint are nice pieces of software and the intent behind it is admirable, but the way our legal system works, that clause has prevented much good that could otherwise have been accomplished.
Just because a legal department says something doesn't make it true. This is not tested in a court of law, and law departments have varying standards and interpretations. Some even have guts. Some prefer themselves not to do evil.
But if you're Raytheon, Haliburton, the U.S. Military, or one of the mercenary step-children of Blackwater then yeah, maybe your legal department is wise to balk.
Basically any corporate entity with a legal department worth its salt will say the same thing.
It's a shame, really, because JSMin and JSLint are nice pieces of software and the intent behind it is admirable, but the way our legal system works, that clause has prevented much good that could otherwise have been accomplished.