Don't feed the troll. coriordan lurks around here looking for opportunities to stretch the limits of relevance to evangelize everybody about the marvels of GPL3 and try to win converts to the Cult of Stallman (though he tends instead to frighten "potential converts" away).
It's a futile and useless waste of time trying to reason with him.
You're totally right that there's no real market for a commercial proprietary VLC frontend. But even if proprietary VLC frontends are made, they won't be in lieu of open-source ones. It's not like there are scores of people out there longing to make a VLC frontend who were going to say "shucks, I guess we'll have to open source all our code" but will now say "hurrah, we can keep it all closed."
The VLC folks decided back in 2007 when the GPL3 was released that they disliked it and wouldn't use it, and the switch from GPL2+ to LGPL 2.1+ is the logical way for them to follow through on their opinion. Wider use of libVLC will be a boon for both VLC and the wider open source multimedia world. It's a welcome move.