Earlier quoted context omitted.
It's the same thing that happens to all "free"/ad-sponsored/VC-backed services. Unless you're FB or Twitter or YouTube, your ads aren't profitable enough to run your business. The business model is unviable unless you get that big. So you lose a bunch of money until you find a way to monetize or close. This always takes the form of user-hostile anti-features. Currently that's forcing users into your special apps, whe…
I call this the dismal equilibrium . Anything free that provides value is, in brute economic terms, mis-priced. Thus, it tends to degrade due to attempts at monetization until a balance is reached between its inherent value and the pain one must endure to use/access it.
Damn, that's a good way to put it.
I assume value includes non tangibles, otherwise open source wouldn't work.