If you look at the contents of an .xco file however, you'll see that there are no particular restrictions on distributing that. So that boils down to:
- the
generated HDL files do come with restrictions, so you don't distribute those
- the .xco (source file if you will) does not come with restrictions, so distribute that
- user runs "regenerate all cores" after importing your sources and tada, HDL files
This does of course require that the user also has a license for this core, to be able to regenerate it. But that should not be an issue for at least the large number of cores that come with the free webpack edition. I suspect that the situation will be similar with Altera.
That said, if you have the time to implement the entire IP portfolio included, go for it!
But reinventing the wheel makes sense only so many times...