On the 'death penalty' thing

I was under the impression that this is a fairly standard settlement deal to avoid a full lawsuit and damages. The FSF also asks for something like this when they settle with a company and drop their lawsuit over GPL violations. In return for dropping the lawsuit the company that settles agrees to appoint something like a Free Software Director that periodically reports to the FSF about compliance with the free software licenses used by the company. It seems cheaper and more productive than having to fight a lawsuit, pay penalties and possibly having to terminate a whole product line. All parties win. I assume in return for not enforcing your copyrights you can ask (demand) anything, the other party doesn't have to agree of course, but if it is cheaper why wouldn't they? Or is this what the lawyers object to?