Well for our own sites and for some of our customers we will be purchasing litespeed VPS editions.
But just FYI mistwang
We had planned to purchase enterprise edition for our shared web hosting servers as well as purchase a license for each of our VPS customers
but because of your policy you have lost out on possibly $1000's because there is no way we could monitor each and every customer and besides it would cause severe legal and moral issues to snoop on customers.
I personally know several shared hosting companies in a few different datacenters that were planning on making the switch but you make it legally impossible for this to happen and I will be sure to let them know about it before they waste money on your product just to have their licenses stripped because a customer hosts what they choose to host.
I am surprised you chose to support hosting control panels with a policy like this it makes absolutely no sense you might as well remove your support for the control panels which I am sure those communities will find this policy to be unacceptable as well.