> I'm not exactly sure what you mean by this. The Free Software Definition does not allow this. If code is contributed to 0AD under the GPL, they could not combine it with proprietary graphics.
> The GNU Free System Distribution guidelines allows for the inclusion of game art that is under a license that does not permit modification. However any such art must be redistributable for commercial and noncommercial purposes at no charge.
The free software definition only really applies to software, not art. There is nothing that would be in conflict for having a free game engine paired with proprietary artwork. There even exists plenty of examples of such; most prominently, the Doom and Quake games.
> This violates the spirit of free software.
The spirit of free software is not "free stuff", but rather the freedom to run and modify programs. A free engine paired with proprietary art doesn't violate anything.
> I think they want the game to be free.
This is the main thing and the primary factor in all of the conversation. While the 0 AD authors _could_ make a proprietary-art game and maybe make a profit doing so, their intention is clearly to have free (as in freedom) artwork as well as to have the game spread as wide as possible. There is nothing wrong with this, just as there would be nothing wrong with making a commercial game. It is a choice and one that can be taken admirably.
The short of it, there probably isn't a business model to speak of. While it does appear there exists a corporation (Wildfire Games) to cover legal concerns, it's doubtful they're doing it for profit.