... and it does kind of go against the whole 'php is free' thing.
Not really, vincent. The PHP license says it's ok to use php in a commercial product so there is definatly a real reason for users to encode/compile their code. Zend makes this possible and very expensive, however, so those that do need it can get it...it's just out of reach of the private developer.
Personally, I'd rather run a php app/scripts as an ASP service if I had a reason to sell it....this avoids the need to compile it too, bo.
In my opinion the spirit of the php lisence is 'do whatever you want'...a bit different from the gpl where sharing is stressed.