On a more serious note, I do have some questions about how this will be applied.
First, how much non-functional code will be on my system when I use it in crippled mode? If I have Windows 7 Starter with no built-in apps, is it as bloated as a full install of an Ultimate edition with all the built-in apps?
Second, how will this be applied by hardware vendors? Will it be "would you like to upgrade to the newest driver?" *click yes* "$9.95, please enter your credit card number now..."?
Third, I agree with the observation that system manufacturers would never go for putting a high priced CPU in a low cost model in the hopes that a user *might* buy an upgrade to it.
Fourth, I do see the cloud computing applications they are reaching for. However, that would make me suspect they may wind up overselling capabilities much like cable internet providers do.
Fifth, I don't agree with the notion of you should only pay for what you use and nothing more. If we did this, then we would have no insurance business at all - we'd have to pay for what we get. This is also why we have so many package deals when buying product. I don't watch sports, but I like SciFi and History. If I buy cable, it all gets pooled together so they can offer many sports and scifi/history channels rather than the most popular and profitable two or three channels.
Sixth, I fully agree we have a severely broken patent system. It is more than just patents, though, but the whole concept intellectual property. Are you a farmer who's crop gets contaminated by GMO seeds that another farmer spilled on your land? Well, your seeds are no longer yours - they belong to the gene patent holder! Write a paper in college? Are you sure that idea you wrote is common knowledge? If not, better have a citation - after all, you probably got the idea from something you read (even if it was from 10 years ago) so you should give the original thinker their due credit!
Essentially, IP comes down to the concept that you can own thoughts and ideas - which, to me, is a very dangerous proposition. I agree we need a patent system, an IP system, and a system of providing due credit - but there also needs to be some reality checks built in. We need to go back to not allowing life to be patented, nor allowing things like tax saving strategies to fall within the realm of IP law. (Makes me want to patent a system for staying out of jail and then suing every law-abiding citizen in the US.)
Which leads to my seventh and final point - yes, I think I agree it is time we make a mass migration to open source. Knowledge is power - information is knowledge - so lets work on a system that empowers everyone rather than concentrates wealth and power to those with the right set of patents.