The type of person who is likely to contribute will be the first to look at the license, and AGPL will rightfully worry them.
For the open source funnel, the potential customers start off as "freeloaders". They are more likely to look at the license in the first place because they are more likely to be using the software in a commercial setting and have to worry about licensing. The AGPL concerns hit them first.
The freeloaders will just switch over to a more liberally licensed project.
The idea that AGPL will "rightfully worry" potential contributors is FUD spread by Google to decrease uptake of the AGPL. AGPL rightfully worries potential freeloaders such as Amazon and Google that want to profit off of proprietary forks of Free Software packages without contributing back to the community.
1. Contributors
2. Customers
3. Freeloaders
The type of person who is likely to contribute will be the first to look at the license, and AGPL will rightfully worry them.
For the open source funnel, the potential customers start off as "freeloaders". They are more likely to look at the license in the first place because they are more likely to be using the software in a commercial setting and have to worry about licensing. The AGPL concerns hit them first.
The freeloaders will just switch over to a more liberally licensed project.