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Software and Community in the Early 21st Century
Keynote address given at Plone Conference 2006 by Eben Moglen of the Software Freedom Law Center
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2) I would say that projects such as Ubuntu and Fedora disprove your slow design theory. In the past years these GNU/Linux operating system have changed much more quickly than cathedral model software projects.
Free software is sold, and also services are sold, today. (See Redhat) In other words, you get paid.
Companies like Microsoft would have us believe that the ethereal bits that make up the algorithms of their software is a "product".
Free software developers use their energy to create value in knowledge. It is very possible to make a living in the transmission of knowledge from one person to another.