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Open Source doesn't fit either model very well though. How do I, as a programmer, earn my daily bread writing open source software that only makes money for somebody selling a hand-held device?

Easy. Work for a hardwny as a developer, freelance or otherwise. It's a win-win-win-win situation!

Win - The hardware distributor who saves heaps on licensing costs for whatever MSFT bloatware they decide to slow down the device with. They also get a feature-set customised for their particular device. The more opoular the device is, the greater the hardware company's share of profits - high margins!

Win - The programmer who gets to do new stuff, and have the name of the hardware manufacturer on his/her CV.

Win - Open Standards remain in place, increasing the 'network effects' of such devices.

Win - Microsoft is nowhere to be seen. Huge reliablility gains.
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