They're an ideological foundation. There are already plenty of others who compromise in the name of pragmatism, and there's nothing wrong with that.
FSF represents a viewpoint that is constantly under threat from some of the world's richest corporations such as Apple. If they became the "Free And Also Not-So-Free (As Long As It's Useful) Software Foundation", they can just as well close shop.
They're now incredibly out of touch with Silicon Valley
Certainly this is a positive thing in the long run? There's much more to technology than just the Valley players' interests.