But with the current state of ambiguity in the licensing, I really dont know what could happen if I sold a work that used an arduino setup that I made, since I would then be making commercial gain in a sense.
I see, so perhaps part of the issue is, what can be called an Arduino, when it's not an Arduino anymore?
Well I think that's fair enough.
I don't think making copies of the Arduino is "sick" fun, put like that, it's perfectly harmless. OS projects are meant to be fun, right?