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I am not a lawyer either, but confusing code created with the tools versus distributing/modifying the tools themselves.
From http://code.google.com/webtoolkit/terms.html
"You may make commercial use ... code or content that you create using Google Web Toolkit Development Tools"
Versus:
"you may not distribute Google Web Toolkit Development Tools or any services or software associated with or derived from them"
Also, for those interested, here is a link to an evolving library of widgets and toold for GWT, http://gwtwidgets.blogspot.com/.
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