Hmm, while the technological aspects are certainly fascinating, I like to analyse things related to sound business models.
Let's take two open source products which are an overwhelming success: Blender and MySQL. Both have been developed by small companies. Both are open source, but mantained by a core team which still works for the original company. Both are also free. In either case, the company releasing the source code has not gone bankrupt. In either case, the company behind those products has a sound business plan which allows them to use their own tools for their own purposes, get income from services developed using those tools, and still keep a developer team which mantains and supports the "core" of those applications.
Let's take two open source products which are an overwhelming success: Blender and MySQL. Both have been developed by small companies. Both are open source, but mantained by a core team which still works for the original company. Both are also free. In either case, the company releasing the source code has not gone bankrupt. In either case, the company behind those products has a sound business plan which allows them to use their own tools for their own purposes, get income from services developed using those tools, and still keep a developer team which mantains and supports the "core" of those applications.

However, I must point out that I can agree with you 100% because I can see that you employ phrases like "sound business models" in a way that is entirely different to their normal usage by traditional business people.
For you, "sound business models" clearly means business models that have been evolved to take into account the new technologies and opportunities and practices that have appeared recently, as your examples illustrate very well. You clearly do not mean "business models that we've been using successfully for two centuries and that we are not willing to change".
And this to me suggests that you are an ideal candidate for the position of business leader in a future of community-based development. My engineering approach of saying that black is black is totally devoid of the diplomacy and tact required to communicate with people whose only interest is in white.

Just let me repeat --- Amen, Gwyn!!!!
Yes, surely, flexibility, adaptation to change, innovation, all of these are also part of a successful business plan, IMHO. And I have seen some pretty radical ones. We also have an advantage in 2005 - we can look back at 1997/8 and see what went wrong with "radical" business plans, and not make the same mistakes all over again. I think that Philip was "lucky", in a sense, that in 1999 - when he started his development of SL - he was fully aware that computers and the broadband Internet would not be able to run something like SL. Because if LL had been created in 1999, they'd get US$ 100 million for the idea, create a mega-structure in San Francisco, hire 250 people, buy 5000 servers instead of the original 16 or so, and run Windows on them - and then close doors in 2001 with no customers and a huge bank debt. So, in a way, the slow growth of LL shows that they are being extra careful with their project. And someone even mentioned that they had earned $ 2.5 million or so last year. I'm not sure if I should be surprised or not, but, then again, I don't really know how much they invested and how much it takes to run LL (although I have an overall idea 
