1) Instructure Canvas is another open-core (AGPL) LMS with a billion dollar market cap company backing it. It has tons of features and users. Why build another AGPL LMS? Is it solely because their Rails tech stack is terrible?
2) Do you want other institutions and orgs to develop alongside you? The use of AGPL says no, you want to focus on cloud hosting. Why not build an MIT-licensed LMS to differentiate yourself?
3) Every LMS seems to suffer from feature bloat. Instructors come up with insane feature requests and pretty soon your gradebook supports 3 different types of grading, with points or percentages, dropping the lowest 3 of 7 grades in a weighted category. Do you go down this road of developing features for your power users like every other LMS? If not, how do you avoid it? I see you're already interested in SCORM (an abandoned standard from 30 years ago). How do you avoid chasing every standard, every package, every power user feature request?