Making the GPL more scary

No, I am not mistaken. If this license would extend to for example the Linux kernel for example I cannot relicense that, because I don't own the copyrights for that and the license for the Linux kernel doesn't allow relicensing, as it is not a permissive license.

Also, regarding permissive licenses: the original code will still be subject to the license conditions such as for example outlined in the BSD license (copyright notices).