I don't think there's anything wrong with permissive license for a piece of software. But if you're running a business that needs to pay developers, it's really not a good idea. Very few, if any, people are going to donate to your project out of a sense of duty to help you keep the lights on.

I don't disagree, but I think the bigger risk is just that big companies who can and should throw some financial support your way, just won't if it's permissively licensed. They've demonstrated repeatedly that they'll just take the software and use it, including making (sometimes substantial) money on it, and none of that will flow back up.