Thankfully, I found one very good post with a clearly rounded whole question and solid answer from someone at MySQL AB:
http://forums.mysql.com/read.php?4,30183,45753#msg...
In Summary:
Question: "Our plan is create an application that will just connect to MySQL Server running on a different machine using Database Connections like MyODBC 3.5 [... do I need] to buy a License from you (MySQL AB) for using MySQL Server?"
Answer: "A good option for you may be becoming a MySQL Certified partner, at the basic level this is just USD 595/yr. See [solutions.mysql.com] for details.
Under the partnership, you can get an optional (but free) non-GPL license for any of the MySQL client libraries, for distribution linked with your closed source product."
Case closed.
-Matt