It's not a market failure because it pisses off one person. It's a market failure in that the long-term sustainability of a fundamental component of the ecosystem is in question. Potentially, Douglas Crockford could hire a team of lawyers and go after every single software engineer or company that he disagrees with by claiming they are "evil" (never mind the ontological questions and somewhat inherent contradiction such behavior would represent).
Yes, the license terms don't matter to 95% of all software developers. So what? Care to guess at the percentage of brokers that made out like bandits trading CDOs? My point is exactly that an ecosystem where the bulk of players can benefit by optimizing for the short-term at the potential expense of the long-term will fail to find the long-term optimal solution (at least, not without significant upheaval).
But then, I suppose I am completely free to till my own back yard, grow some vegetables, and raise chickens so...yeah, complete market triumph!