It seems such a pity that a compromise could not be reached and of course both sides will blame each other. I have no opinion other than I feel greatly let down.
My final question is does anyone here at SMF feel that a solution is likely, and my question relates only as far as me selfishly being able to use SMF alongside Joomla?
Unfortunately, there is no room for a compromise. The easy thing would be for Joomla! to have an exception in the license that allows third-party components under any license, but they feel they do not have the ability to do such as they don't hold all of the copyright in the code (and thus would need permission from every contributor to change their license). The other option would be to have SMF under the GPL, but, for reasons I won't go into here (it is talked about elsewhere) that will likely won't happen. Do believe me, we tried to find a way to respect the license and still allow the bridge to function, but there is no way short of what I said above.
I currently have this...
Joomla 1.0.12
SMF 1.1.2
SMF bridge 1.1.7
I will have to upgrade to Joomla 1.0.13
How difficult will it be for me to tweak the bridge to work with the upgraded Joomla?
I'll leave the changes part for those who have the knowledge of the bridge, but I do want to ask why you have need to move to 1.0.13. (I don't follow J! progress, so I don't know what changed).
I do have an idea for "integration" that might work around the license, but it wouldn't be all that nice and is kinda clunky. Basically, don't integrate SMF as a component via the bridge, and keep separate installs of Joomla! and SMF. With a third package (that is self-contained), watch for db modifications (new account, etc) and then do the same changes for the opposite package. With a small SMF mod, you might be able to get SMF to respect Joomla!'s login cookie and session info (assuming that won't trip the license issue) to allow a one-login solution. As I said, it is clunky, but I personally don't see that running into licensing issues as it doesn't touch any GPL code.