I happened to come across that clause last week and tracked down some humorous commentary by jslint's author:
Douglas: That's an interesting point. Also about once a year, I get a
letter from a lawyer, every year a different lawyer, at a company--I don't
want to embarrass the company by saying their name, so I'll just say their
initials--IBM...
[laughter]
...saying that they want to use something I wrote. Because I put this on
everything I write, now. They want to use something that I wrote in
something that they wrote, and they were pretty sure they weren't going to
use it for evil, but they couldn't say for sure about their customers. So
could I give them a special license for that?
Of course. So I wrote back--this happened literally two weeks ago--"I give
permission for IBM, its customers, partners, and minions, to use JSLint for
evil."
His javascript minifier 'jsmin' was causing projects to get removed from Google Code and other places that only host open source code, so I emailed Mr. Crockford to ask if I could get the same extension he gave to IBM. His response was less than thrilling-
I released to free use for all with the only condition that it not be used for evil. If that is unacceptable to you, then you may not use it. Your options are to bend to the pro-evil fanatics, or to find a more reasonable hosting solution.