Earlier quoted context omitted.
Being blinded by hubris and taking a hard left off a cliff on a potentially profitable venture are not things I would consider "smart". Saying it was "smart but handled poorly" is an excuse. It was a series of dumb moves because they did not see the actions they needed to take and in what order and on what timeframe to not capsize.
Correct. In general it's a good capitalist scheme. Start with a mostly open platform, court third parties into making tools that make it significantly better, get your user base. Then kill the third parties to consolidate power. It worked for Facebook. It worked for Google Chat. It's failing for Twitter, and for reddit, for the same reasons. They did it too quickly and without the finesse needed to prevent a revolt.…
Microsoft used it like a scalpel and a hammer for decades.